Income Tax Audit Due Date Extended to October 31: What CBDT’s Latest Notification Means for Taxpayers

Income Tax Audit Due Date Extended to October 31

In a significant relief for businesses, professionals, and accountants, the Central Board of Direct Taxes (CBDT) has officially extended the due date for submitting the income tax audit report for the financial year 2024-25. Initially, the deadline was set at September 30, 2025, but now taxpayers have until October 31, 2025 to complete the process.

The decision, announced through a formal CBDT notification, has been welcomed by tax professionals who had been urging the government to allow more time due to technical challenges and increased compliance burdens.

Why Was the Audit Due Date Extended?

Several industry bodies and chartered accountants had raised concerns about the September 30 deadline. They argued that frequent system slowdowns on the Income Tax e-filing portal, coupled with the workload of handling GST filings and other statutory requirements, made it difficult to complete audits on time.

A senior tax consultant from Delhi explained, “The extension was much needed. Many firms were struggling to finalize their books. The one-month breather will help ensure accuracy and reduce last-minute errors.”

What the CBDT Notification Says

According to the CBDT notification, the extension applies specifically to taxpayers who are required to furnish a tax audit report under sections 44AB, 44ADA, and other relevant provisions of the Income Tax Act, 1961.

This means:

Businesses with turnover exceeding the prescribed limits.
Professionals with income above the audit threshold.
Entities required to furnish Form 3CB-3CD or 3CA-3CD.

All of these groups now have until October 31, 2025 to file their reports.

No Change in ITR Due Date (Yet)

One important clarification: while the tax audit report due date has been extended, there has been no official announcement regarding the ITR filing due date for AY 2025-26.

This is why many professionals are closely monitoring CBDT updates. In past years, the audit report extension often led to an ITR due date extension, but for now, taxpayers should assume that ITR deadlines remain unchanged unless another notification is issued.

Impact on Taxpayers and Businesses

The extension may look like just an extra month on paper, but it carries big implications for thousands of businesses:

Reduced Compliance Pressure – Accountants now have more breathing room to prepare accurate audit reports.
Better Quality of Reporting – With additional time, firms can cross-check data instead of rushing to meet deadlines.
Alignment with Festival Season – Many businesses were concerned about September-end deadlines overlapping with the festive calendar. The new date offers flexibility.

For mid-sized firms, this extension is particularly important. A Mumbai-based CFO noted, “September is always packed with multiple filings. Extending the audit deadline reduces bottlenecks, especially for companies that have overseas operations.”

Relevance Under Income Tax Act, 1961

The Income Tax Act, 1961 mandates audits for certain categories of taxpayers. Failure to comply attracts penalties under Section 271B. With the extension, taxpayers can avoid penalties, provided they file the audit report by the revised date.

This extension also reaffirms CBDT’s recognition of practical challenges faced by taxpayers in meeting statutory deadlines.

Looking Ahead

While taxpayers welcome this decision, many experts believe CBDT may need to address larger issues, including frequent glitches in the income tax portal and overlapping timelines with GST and MCA compliances.

For now, the extension provides relief and ensures businesses have adequate time to complete their audits. Tax professionals, however, advise not to wait until the last week of October, as heavy traffic on the portal may lead to filing issues.

As one chartered accountant summarized: “An extension is not an excuse to delay. It’s an opportunity to ensure compliance without errors.”