The Central Board of Direct Taxes (CBDT) has formally declared that the deadline of Income Tax Audit Report has been extended to the financial year 2024-25 (Assessment Year 2025-26) to provide a great relief to businesses, professionals, and taxpayers in India.
The new deadline was originally 30 September 2025, but in the latest CBDT Circular No. 14/2025, it is 31 October 2025.
This was added following several appeals by chartered accountants, trade associations, and taxpayers who encountered problems with the slowness of the portals, technical hiccups and overlapping compliance due dates with both GST and TDS filings.
This exhaustive guide will cover all the essentials of the subject such as eligibility, penalties, forms, compliance tips, and even the knowledge of the expert so that you can remain up to date, not end up in a hurry and submit your audit report correctly.
What Is an Income Tax Audit?
An Income Tax audit refers to a thorough scrutiny of books of accounts, income statements and financial transactions of the taxpayer to determine whether the income, expenses and deductions have been duly mentioned on the Income Tax Return (ITR).
It is regulated by the 44AB of the Income tax Act, 1961, and it is applicable to the taxpayers who pass the certain turnover or income limits.
Purpose of a Tax Audit
- Be accurate and transparent – Make sure that the reporting of income and deductions is accurate.
- Detection and prevention of tax evasion– Unrecorded income or overstated expenses.
- Maintain even accounting standards -Make sure that books are kept in accordance with the law.
- Establish financial credibility – Clean audit report builds business confidence amongst lenders and investors.
For example, if a business shows ₹12 crore turnover but records large cash expenses without receipts, the audit helps identify and correct such inconsistencies before filing.
Who needs to get a tax audit done?
The need for a tax audit is based on the nature and size of the income of the taxpayer.
1) Businesses
A tax audit is mandatory if total sales, turnover, or gross receipts in a financial year exceed ₹1 crore.However, under the Finance Act 2020, if a business’s cash transactions (receipts and payments) are less than 5% of total transactions, the audit threshold increases to ₹10 crore.
This encourages businesses to adopt digital payments and reduce cash dealings.
Example:
A trading firm with ₹9 crore annual turnover, where less than 5% transactions are in cash, need not undergo an audit.
2) Professionals
In the case of persons or companies in the field of law, medicine, architecture, accountancy, IT consultancy or design, the threshold is ₹50 lakh gross receipts in the financial year.
Example:
A freelance marketing consultant whose income (including other expenses not covered here) is ₹60 lakh in FY 2024- 25 has to have her accounts audited according to Section 44AB.
3) Cases of Presumptive Income Scheme.
Under Section 44AD, 44ADA and 44AE, taxpayers are permitted to report income on presumptive basis.Nevertheless, in the case as they report less than the presumptive rate and they have above the basic exemption threshold, they are required to undergo an audit.
Example:
The small business owner with a profit under 44AD with profits less than 8% of the turnover but over ₹2.5 lakh is required to undergo audit.
4) Other Specific Cases
In case a taxpayer has not availed himself of presumptive taxation in any prior year and cannot re-opt within 5 years.And whether or not the taxpayer under Section 92E is obliged to file a Transfer Pricing Report (Form 3CEB).
When is the Next Tax Audit Report Due?
| Category | Due date (2017) | Extended Due date (2025) |
| Audit Report (Section 44AB) | 30 September 2025 | 31 October 2025 |
| ITR – Non-Audit Cases | 31 July 2025 | 15 September 2025 |
| ITR – Audit Cases | 31 October 2025 | 31 October 2025 |
| Transfer Pricing / Section 92E Cases | 30 November 2025 | 30 November 2025 |
This clarification by CBDT through Circular No. 14/2025 is a relief to millions of tax payers who had problems with the date of compliance overlaps.
Why Was the Due Date Extended?
The extension of the due date was based on several representations made by professional bodies citing:
- Technical Glitches: Regular shutting down of the portal of Income Tax e-filing (particularly 3CA/3CB/3CD).
- Delayed Utility Releases: Audit and ITR utility tools were published later, which reduced the time of preparation.
- Overlapping Deadlines: There were bottlenecks in business as there was parallel filing; GST annual returns, TDS, and MCA.
- Natural Calamities: Floods and local disturbances had impacted business in sections of India causing delays in preparing audits.
The extension assists in the reduction of compliance burden without compromising accuracy and transparency.
Impact of the Extension
1) For Businesses
- Additional time to settle accounts, check books, and balance.
- Time to evade penalties by filing in time.
- Better communication between the auditors and the finance teams.
2) For Chartered Accountants
- Less work load pressure, more time to review.
- Capability to verify financial information free of errors.
3) For the Government
- Higher-quality filings, compliance with tax regulations, and a reduction in the amount of corrections after the deadline.
Forms that are to be filled during the filing of the Tax Audit Report.
| Form | Purpose |
| Form 3CA | Used when the taxpayer is already subject to another statutory audit (e.g., Companies Act). |
| Form 3CB | Used when the taxpayer is not required to get audited under any other law. |
| Form 3CD | Detailed annexure with 44 clauses including income, deductions, loans, depreciation, etc. |
The uploading of all forms is done through the Income Tax e-Filing Portal and the forms are digitally signed by a Chartered Accountant.The report has to be accepted by the taxpayer online.
Steps to File the Tax Audit Report Online
- Access to Income Tax Portal.
- Go to e-File -Income Tax Forms.
- Choose the Form 3CA/3CB/3CD according to your case.
- Fill in the necessary information and provide the support documents.
- Sign with the signature of the CA by use of DSC and submit.
- The taxpayer must accept the report from their account.
There should be a second time of verification of the financial information before the approval- once the approval has been granted, amendments may also be time-consuming.
Punishments on Failure to get the Due Date.
Non-compliance with the deadline of submission of the audit report will attract penalties as per Section 271B.
Penalty = Lower of:
- ₹1,50,000, or
- 0.5% of turnover or gross receipts.
Additional Consequences
- Disallowance of specific deductions.
- Uneligibility to continue to claim business losses.
- Greater vulnerability to scrutiny notices and compliance inspections.
Example:
A company which has ₹5 crore turnover that fails to meet the deadline can be fined ₹2.5 lakh (0.5% of ₹5 crore) but not more than ₹1.5 lakh.
Difference Between ITR Due Date and Audit Report Due Date
| Aspect | Audit Report | Tax Return (ITR) |
| Purpose | Certification of accounts by a CA | Declaration of total income and tax payable |
| Applicable To | Businesses/professionals exceeding limits | All taxpayers |
| FY 2024-25 Due Date | 31 October 2025 | 31 October 2025 (for audit cases) |
| Delay Consequence | Penalty (Sec. 271B) | Interest + Late fee (Sec. 234A/F) |
A simple rule: the audit report must be filed before submitting the ITR
The most important compliance tips of taxpayers.
- Early start: Portal slowness is a usual problem around deadlines.
- Cross-check turnover qualifies as an audit.
- Balance GST, TDS and books accounts prior to audit.
- Revise digital signatures and have secured backups.
- Organize yourself to coordinate with your CA to avoid last minute mistakes.
The Significance of Early Filing.
Last-minute stress can be avoided, but the early filing can also be of strategic benefit:
- Fewer surprises in tax planning: Filing early means that you will have time to maximize your deductions.
- Correction of errors: The errors can be corrected before they become expensive.
- Peace of mind: Do not crash the portal and do not be punished without any reason.
- Better financial reputation: Lenders will like cleaning businesses and on time compliance.
- Better financial reputation: Lenders will like cleaning businesses and on time compliance.
- Case in point: A company that files its audit report early enough (2 months early) can easily rectify any miscalculations on depreciation, which will help save a notice in the future.
The Extension and Its Benefits to various taxpayers
- Small Businesses: Get the flexibility to accomplish record maintenance and utilize scarce accounting resources effectively.
- Startups: Additional time to match audits and fundraising rounds, investor due diligence or equity reporting.
- Freelancers & Professionals: Time to prepare the receipts, client invoices and expense claims on schedule.
- CAs and Audit Firms: Enables the easier workload redistribution and quality auditing at high-volume filing times.
Experts opinions from tax professionals.
The most influential tax practitioners consider this extension to be both a relief and a reminder.
- Relief: It deals with real portal related issues.
- Reminder: It is recommended to continue its efforts on development of strong digital infrastructure to make future filings
This is the time, according to experts, that needs to be used to build capacity e.g. digitization of accounting records, introduction of automation in accounting and educating employees on e-filing procedures.
How Businesses Can Prepare for Next Year’s Audit
In order to prevent stress in the future, the businesses are advised to consider audits as an annual round-the-year process, rather than as an annual event.
Digitize Your Records: Track it in real-time with accounting software such as Tally, Zoho Books or QuickBooks based on the cloud.
Monthly Reconciliation: Check bank, GST, and TDS statements on monthly basis to identify discrepancies at early stage.
Maintain an Audit Trail: Maintain a clear account of all transactions, particularly, cash expenditure, payment to vendors and collection to clients.
Engage Early with Your CA: Plan quarterly review, rather than annual, rushes – this is a way of having clean and accurate financial statements.
Data Backup and Security: Always save your financial information and keep a secure password management system to avoid losing anything over the Internet.
How This Affects You (From Acumen’s Perspective)
We are of the opinion that compliance and financial discipline are two things that are hand in hand at Acumen Capital Market (India) Ltd. Although the extension of the CBDT offers temporary relief, the responsible taxpayers must take this time to order their accounting systems and prepare them to audit.
Timely filing ensures:
- Easy financial affairs and less stress.
- Greater readiness to audit and smaller fines.
- Increased trust in the banks, investors, and authorities.
We suggest that the audits need to be done at least two weeks before the deadline so that they are safe and sure.
Frequently asked questions regarding Income Tax Audit Due Date.
1) By what date do you have to file the Income Tax Audit Report for FY 2024-25?
31 October 2025 (prolonged to 30 September 2025).
2) What happens when I fail to meet the tax audit report deadline?
It may be fined up to ₹1.5 lakh or 0.5 percent turnover.
3) Is the ITR due date going to be extended as well?
It is currently 31 October 2025 in case of audits.
4) Am I allowed to submit my ITR before I submit my audit report?
No. First of all, one should upload the audit report.
5) Is a professional earning more than ₹50 lakh required to do the audit?
Yes, under Section 44AB.
6) In which place can I get the official notification of CBDT?
In the Income Tax India site– Circular No. 14/2025.
Conclusion
The move to extend the deadline to 31 October 2025 of the Income Tax Audit Report provides the breathing space to taxpayers much needed. Nevertheless, it is necessary to regard it as an occasion to become more compliant, rather than as a reason to wait.
Make sure that there is no inaccuracy on your accounts, documents are uploaded appropriately, and audit reports are submitted early enough. Remaining compliant is not only the best way of avoiding the payment of fines, but also enhancing your financial reputation, transparency, and investor confidence.
