The CBDT has extended the tax audit report filing deadline to October 31, 2025. Learn what this means for you and how to comply with the new deadline.
If you’re a business owner, professional, or entrepreneur in India, the Income Tax Audit Report (TAR) deadline extension to October 31, 2025, is a crucial development you can’t afford to overlook.
Originally set for September 30, 2025, the Central Board of Direct Taxes (CBDT) has extended the deadline for filing tax audit reports for the Financial Year 2024-25 (Assessment Year 2025-26) to October 31, 2025. This extension provides taxpayers and tax professionals with additional time to comply with audit requirements under Section 44AB of the Income-tax Act, 1961 Income Tax India.
📌 Understanding the Tax Audit Requirement
Under Section 44AB of the Income-tax Act, 1961, certain taxpayers are required to get their accounts audited and furnish a tax audit report. This applies to:
- Businesses: If your turnover exceeds ₹1 crore.
- Professionals: If your gross receipts exceed ₹50 lakh.
- Other Entities: As specified under the Act.
The purpose of the tax audit is to ensure that the taxpayer’s accounts are maintained in accordance with the provisions of the Income-tax Act and to verify the correctness of the income and deductions claimed.
📅 What Does the Extension Mean for You?
The extension to October 31, 2025, offers several benefits:
- Additional Time: More time to compile and audit financial records.
- Reduced Pressure: Less stress in meeting the original deadline.
- Opportunity for Accuracy: More time to ensure the accuracy of financial statements.
However, it’s important to note that this extension applies only to the filing of the tax audit report. The deadline for filing the Income Tax Return (ITR) remains unchanged at October 31, 2025 The Economic Times.
📝 Key Forms to Be Submitted
For the Financial Year 2024-25, the following forms are typically required:
- Form 3CA: For taxpayers who are required to get their accounts audited under any other law.
- Form 3CB: For taxpayers who are not required to get their accounts audited under any other law.
- Form 3CD: A detailed statement of particulars required to be furnished under section 44AB.
Ensure that these forms are accurately filled and submitted by the extended deadline.
⚠️ Consequences of Missing the Extended Deadline
Failing to submit the tax audit report by the extended deadline can lead to:
- Penalties: A penalty of ₹1.5 lakh or 0.5% of the turnover, whichever is lower.
- Interest: Interest under sections 234A, 234B, and 234C may apply.
- Loss of Benefits: Certain deductions and exemptions may be disallowed.
It’s crucial to adhere to the extended deadline to avoid these consequences.
📌 Action Steps to Take Now
To ensure timely and accurate filing:
- Review Financial Records: Ensure all financial transactions are accurately recorded.
- Consult a Tax Professional: Seek assistance from a Chartered Accountant or tax consultant.
- Complete Necessary Forms: Fill out Forms 3CA, 3CB, and 3CD as applicable.
- Submit via E-Filing Portal: Use the official Income Tax e-filing portal for submission.
📣 Final Thoughts
The extension of the tax audit report filing deadline to October 31, 2025, provides a valuable opportunity to ensure compliance without the pressure of the original deadline. Utilize this time wisely to prepare accurate and complete submissions.
If you have any questions or need assistance with the tax audit process, feel free to reach out to a qualified tax professional. Remember, timely and accurate filing is key to avoiding penalties and ensuring smooth business operations.
