Tax Audit Deadline: CBDT Provides Relief, Extends Deadline for Submission of Tax Audit Reports

CBDT Extends Tax Audit Report Deadline to October 31, 2025, Giving Relief to Auditors and Businesses

The Central Board of Direct Taxes (CBDT) has announced a major relief for taxpayers and auditors by extending the deadline for filing tax audit reports for the financial year 2024-25. The last date, which was earlier set as September 30, 2025, has now been extended to October 31, 2025.

The decision comes in response to multiple representations from professional associations, chartered accountants, and taxpayers who highlighted the difficulties of meeting the earlier deadline due to the tight timelines and disruptions caused by natural calamities in parts of the country.

Why Was the Deadline Extended?

The government had already extended the Income Tax Return (ITR) filing deadline for FY 2024-25 (Assessment Year 2025-26) from July 31 to September 15, 2025. However, this left auditors with just 15 days to complete and file tax audit reports.

With nearly 40 lakh audit reports filed each year, experts flagged the impossibility of completing the task in such a short span. By September 23, only about 4 lakh reports had been submitted, leaving more than 36 lakh reports pending.

Recognizing these challenges, CBDT decided to extend the tax audit filing deadline by a full month.

What CBDT Said in Its Statement

In its official communication, CBDT stated:

• It received several representations from professional bodies, including chartered accountant associations, outlining the difficulties in filing audit reports on time.

• Disruptions due to floods and natural calamities in some states had further hampered business and professional activity.

• The matter was also raised in various High Courts, where associations requested more time to ensure compliance.

Taking these factors into account, CBDT extended the deadline under Section 139 of the Income Tax Act, 1961, moving the date from September 30, 2025, to October 31, 2025. A formal notification is also being issued separately.

Relief from High Courts

Before the CBDT’s announcement, both the Rajasthan High Court (Jodhpur Bench) and the Karnataka High Court had intervened in the matter:

• The Rajasthan High Court directed CBDT to extend the deadline until October 31, 2025, following a petition from the Jodhpur Tax Bar Association.

• Similarly, the Karnataka High Court extended the deadline by one month under Section 44AB of the Income Tax Act on a petition filed by the Karnataka State Chartered Accountants Association (KSCAA).

These judicial interventions added weight to the demands from professional bodies and taxpayers.

Tax Filing Progress So Far

CBDT clarified that the Income Tax e-filing portal has been working smoothly, with no major technical glitches. Audit reports are being uploaded successfully, and the system is fully functional.

• As of September 24, 2025, more than 4,02,000 tax audit reports had already been uploaded.

• On September 24 alone, over 60,000 reports were filed.

• Meanwhile, by September 23, 2025, more than 7.57 crore ITRs had been filed for the assessment year, indicating strong progress in compliance.

Why This Extension Matters

The deadline extension is crucial for:

• Large companies, trusts, and traders who are legally required to undergo tax audits before filing returns.

• Chartered accountants who must balance multiple client audits in a short window.

• Taxpayers in disaster-hit areas, where floods and other natural events disrupted normal business operations.

Without the extension, lakhs of taxpayers risked missing the deadline, potentially facing penalties and compliance complications.

Final Word

With the deadline now set at October 31, 2025, taxpayers, auditors, and businesses have much-needed breathing space. The move not only eases compliance pressure but also ensures more accurate filing of audit reports.

The Income Tax Department has reassured stakeholders that its digital portal is fully operational, enabling smooth uploads of both audit reports and ITRs.

Experts believe this extension will significantly reduce the compliance burden and prevent last-minute rushes, helping maintain better accuracy and compliance across the system.