Tax Audit Deadline: Big Relief for Taxpayers! Income Tax Audit Report Deadline Extended, Know the New Date and Penalties

Tax Audit Deadline: Here is a major relief for the country’s taxpayers. The Income Tax Department has extended the last date for filing the tax audit report for the financial year 2024-25. The previous deadline was September 30, 2025, which has now been extended to October 31, 2025. This decision will be immensely helpful for all those taxpayers who were unable to submit their documents on time due to natural disasters or technical difficulties.

The Central Board of Direct Taxes (CBDT) has taken this decision keeping in mind the flood situations in various parts of the country and technical issues on the e-filing portal. Due to the extension of the deadline, affected taxpayers can now submit their tax audit reports in a timely manner, without any rush. This decision provides a significant opportunity to avoid penalties and legal complications.

Who is a Tax Audit Mandatory For?

According to the Income Tax Act, a tax audit is mandatory for certain individuals or businesses. The conditions are mentioned below:

• Business: A tax audit is mandatory if a business has an annual turnover of more than ₹1 crore. In some cases, this limit can be as high as ₹10 crore.
• Professionals: If a professional’s gross receipts exceed ₹50 lakh annually, an audit is applicable for them as well.

This audit is conducted by a Chartered Accountant, and its report is required to be submitted along with the income tax return.

Information on Fines and Penalties

Failure to file a tax audit report within the stipulated timeframe may result in a penalty under Section 271B of the Income Tax Act. The penalty can be up to ₹1.5 lakh or 0.5% of the firm’s total turnover, whichever is lower. Therefore, all taxpayers are urged to file their reports on time.

How to File?

Taxpayers are advised to have all their financial information, bank statements, and documents of expenses and income ready. The submission of reports is done through the e-filing portal, which is a simple and secure process. It is crucial to submit the audit report correctly along with other required documents.

With the new deadline of October 31st, taxpayers will be able to file their tax audit reports comfortably. This extension is a major relief for them. Therefore, do not rush, but submit your reports on time with complete preparation to avoid any future difficulties.