Income Tax Audit Report Due Date Extension 2025 | Latest CBDT Update

Income Tax Audit Report Due Date Extension 2025: Latest CBDT Notification & What It Means for Taxpayers

The Central Board of Direct Taxes (CBDT) has officially extended the income tax audit report due date for the Financial Year 2024-25 (Assessment Year 2025-26) from September 30, 2025, to October 31, 2025. This extension provides much-needed relief to taxpayers and professionals grappling with audit compliances amid disruptions from floods and natural calamities in various regions.

Why Was the Income Tax Audit Due Date Extended?

The CBDT received several representations from Chartered Accountant bodies and other professional associations highlighting difficulties in completing audits on time due to natural disasters and the resulting operational challenges. Even the Hon'ble High Courts have taken note of these issues, prompting the CBDT to act. Despite the extension, the Income Tax e-filing portal remains fully functional and stable, with over 4 lakh tax audit reports filed by late September 2025.

What Is the New Due Date and Who Does It Affect?

For taxpayers falling under clause (a) of Explanation 2 to sub-section (1) of section 139 of the Income Tax Act, 1961, the deadline for submitting various audit reports for AY 2025-26 is now October 31, 2025. This includes tax audits under Section 44AB and other audit reports mandated by the Act.

Penalties for Missing the Audit Report Deadline

If the audit report is not filed by October 31, 2025, a penalty under Section 271B may be levied, which is 0.5% of the turnover or gross receipts, capped at ₹1.5 lakh. However, this penalty can be avoided if the taxpayer demonstrates a reasonable cause, such as natural calamities or other valid hardships.

What About the Income Tax Return (ITR) Filing Date?

Currently, the ITR filing due date for taxpayers required to conduct an audit remains October 31, 2025. There is speculation that the CBDT may issue a separate notification extending the ITR filing deadline to November 30, 2025, but as of now, this is not confirmed.

Important Sections Referenced

• Section 139(1), Explanation 2(a) of the Income Tax Act, 1961 — Prescribes the due date for audit report submission.

• Section 271B — Details penalties for late audit report filing.

Summary Table: Income Tax Audit Report Due Date 2025

Aspect	Details
Original Audit Report Due Date	September 30, 2025
Extended Audit Report Due Date	October 31, 2025
Applicable AY	2025-26
Penalty for Late Filing	0.5% of turnover, max ₹1.5 lakh
ITR Filing Due Date	October 31, 2025 (not extended yet)

Actionable Tips for Taxpayers and Professionals

• Prioritize completing audit reports by the new deadline to avoid penalties.

• Keep documentation ready to demonstrate reasonable cause if delays occur.

• Monitor CBDT notifications for any updates on ITR filing extensions.

• Use the Income Tax Department's e-filing portal, which is stable and fully operational.

For more authoritative information, visit the official Income Tax Department website and refer to the latest CBDT press releases and circulars.

FAQ

Q: What is the new due date for income tax audit reports for AY 2025-26?A: The due date has been extended to October 31, 2025.

Q: Will there be a penalty if I miss the audit report deadline?A: Yes, a penalty under Section 271B may apply, but can be waived for reasonable cause.

Q: Has the ITR filing date been extended for taxpayers undergoing audit?A: Not yet; the ITR due date remains October 31, 2025, but a separate extension may be notified.

This timely extension by the CBDT ensures compliance flexibility amid challenging circumstances while maintaining the integrity of tax administration. Stay updated with official announcements and prepare accordingly to meet your tax obligations without stress.