The Central Board of Direct Taxes (CBDT) has officially extended the deadline for filing income tax audit reports to October 31, 2025. This move comes as a relief for chartered accountants (CAs) and businesses struggling to meet the earlier September 30 deadline due to system load and compliance pressure. But the bigger question on everyone’s mind is — will the income tax return (ITR) filing due date for audit cases also be extended to November 30, 2025?
Why was the extension needed?
Tax professionals had been lobbying for more time, citing issues with the reporting portal and the large volume of filings. A Delhi-based CA told us, “Every year, the last two weeks of September become a nightmare. Servers slow down, forms don’t upload properly, and clients panic. This extension gives us some breathing space.”
According to the notification, the due date for Tax Audit Report (TAR) submissions has been pushed to October 31, but the ITR filing deadline for audit cases still officially remains October 31. That means, as of now, taxpayers who need an audit don’t automatically get more time to file their returns. However, there is speculation that the government may align the ITR date with the extended audit date, which would shift the deadline to November 30, 2025.
What exactly is a tax audit?
A tax audit is not a typical financial audit. It’s a special review of a taxpayer’s accounts to ensure compliance with provisions of the Income Tax Act, 1961. Essentially, the CA checks whether income, expenses, and claims are recorded properly and whether tax laws have been followed. The final report is filed electronically in Form 3CA/3CB and Form 3CD.
For ordinary individuals filing salary-based returns, this doesn’t apply. But for businesses, professionals, and entities crossing certain turnover limits, a tax audit is mandatory.
Is the audit limit ₹1 crore or ₹2 crore?
Here lies one of the most common confusions. As per current rules:
- For businesses, if turnover exceeds ₹1 crore, a tax audit is compulsory.
- However, if 95% or more of transactions are digital, the audit limit increases to ₹10 crore.
- For professionals (like doctors, lawyers, consultants), the audit is mandatory if gross receipts exceed ₹50 lakh.
So the popular “₹1 crore or ₹2 crore” question is outdated. In reality, it is ₹1 crore basic limit, but with digital transactions, the threshold can go up to ₹10 crore.
How much does a CA charge for a tax audit?
Fees vary widely depending on the size of the business, complexity of accounts, and the CA’s experience. On average:
- Small businesses with turnover just above the limit may pay ₹15,000–₹30,000.
- Mid-sized companies often spend ₹40,000–₹75,000.
- Larger corporates, with multiple branches and complex structures, can be billed in lakhs.
One Mumbai-based firm noted, “Most taxpayers try to negotiate. But with rising compliance requirements, CA firms are investing in technology and staff, so audit charges have gone up steadily in recent years.”
What happens if you miss the deadline?
If a tax audit report is not filed by the deadline, the penalty under Section 271B kicks in. The fine can be 0.5% of turnover or ₹1.5 lakh, whichever is lower. But more than the penalty, the real pain is in delayed ITR filing, which can lead to interest on tax dues, loss of carry-forward benefits, and even scrutiny notices.
Why this matters for taxpayers
For businesses, especially small and medium enterprises, compliance is a resource-heavy exercise. Owners must share data with CAs, reconcile GST filings, and prepare detailed statements. Any delay on the CA’s side due to workload directly affects the taxpayer’s ability to file ITR on time. That’s why stakeholders argue that unless the ITR deadline is extended in sync, the audit extension alone offers limited benefit.
Will the ITR deadline be extended to November 30?
So far, CBDT has not confirmed any change. But tax experts believe that since the audit report is now due by October 31, logically the ITR date should move to November 30, giving taxpayers a one-month buffer. This has been the pattern in earlier years.
If the extension is officially announced, taxpayers in audit cases will breathe easier. Until then, professionals are advising clients to prepare early rather than gamble on a last-minute notification.
Final word
The extension of the tax audit deadline is a welcome relief, but uncertainty around the ITR due date continues. Businesses and professionals must keep their books ready and not wait until the last moment. Whether the government bows to pressure and extends ITR filing to November 30 will be the next big update to watch.
As one CA summed it up: “Extensions help, but they’re like painkillers — they don’t cure the underlying disease of a clogged system. What taxpayers really need is a smoother portal and less compliance chaos every year.”