30 Sep 2025
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When Central Board of Direct Taxes (CBDT) announced on September 25, 2025 that the filing cut‑off for tax audit reports would move from September 30 to October 31, the relief was palpable across boardrooms and accounting firms alike.
The shift applies to the financial year 2024‑25 (assessment year 2025‑26) and follows a flurry of requests from the Chartered Accountants Association and several trade bodies that warned of bottlenecks in the e‑filing portal.
Here’s the thing: the Income Tax Department, which operates the e‑filing system, confirmed on its X (formerly Twitter) feed that the new deadline is now October 31, 2025. The change gives large corporations, trusts and merchants an extra month to polish their audit reports before the statutory clock runs out.
Background: Tax Audit Requirements and the Old Deadline
Under Section 139(1) of the Income Tax Act 1961, any taxpayer whose turnover exceeds ₹1 crore (₹5 crore for professionals) must get a tax audit conducted by a chartered accountant and submit the report through the e‑filing portal. Historically, the deadline synced with the end of the financial year, landing on September 30 for the FY 2024‑25.
For many, that date felt as tight as fitting a suitcase into an already‑full overhead bin. The portal reported a surge of 7.57 crore ITRs by September 23, 2025, but the audit upload numbers lagged, creating a backlog that threatened penalties.
Extension Announcement and Rationale
In a short X post, the Income Tax Department quoted the board’s decision: “CBDT has extended the deadline for filing tax audit reports for FY 2024‑25 from September 30 to October 31, 2025.”
But wait – the move wasn’t just a knee‑jerk reaction. Over the past month, the board received formal letters from the Behlwa Tax Bar Association and the Jodhpur Tax Bar Association, both pleading for leniency after courts in Rajasthan flagged the tight timeline.
“We were scrambling to reconcile data while the portal hiccupped,” said a senior partner at a Delhi‑based chartered‑accountancy firm (who asked to remain anonymous). “An extra 30 days feels like moving the finish line just far enough to let us catch up.”
Numbers So Far: Returns and Audits Filed
According to CBDT’s latest dashboard, by September 23, 2025, more than 7.57 crore income‑tax returns had been successfully e‑filed. The audit front is catching up too: as of September 24, 2025, roughly 4.02 lakh audit reports were uploaded, and over 60,000 of those were already marked as complete.
These figures suggest a steady climb, but the gap between returns and audit submissions remains sizable – a classic case of the last mile problem in digital compliance.
Reactions from Professional Bodies and Courts
The Rajasthan High Court, sitting in Jaipur, had earlier directed the board to consider extending the deadline after hearing joint petitions from the two tax bar associations. The court noted that the existing cutoff “undermines the principle of natural justice when technical glitches impede timely filing.”
Legal analysts say the high court’s intervention set a precedent that pushed the board toward a pragmatic solution. “It’s not just about giving extra days,” explains Neha Verma, a tax law professor at the University of Delhi. “It signals that regulatory timelines must adapt to on‑ground realities, especially when digital infrastructure is still scaling.”
What This Means for Taxpayers
For big players – say a multinational with a ₹2,500 crore turnover – the extension translates into a breathing space to reconcile inter‑company loans, verify GST credits and align with transfer‑pricing documentation. Smaller traders, meanwhile, can now dodge a frantic weekend of data entry that would otherwise clash with festive season preparations.
Still, the deadline is a hard stop. Any audit report lodged after October 31 will attract penalties as per Section 271F of the Act, which can run up to ₹10,000 per day for each non‑compliant taxpayer.
Looking Ahead: Potential Further Adjustments
The board hinted that it will monitor the October 31 cut‑off closely. If the audit upload rate continues to lag, another extension could be on the table, though officials warn that “repeated delays may erode compliance culture.”
Meanwhile, the e‑filing portal is slated for a backend upgrade in November, aimed at handling peak loads more smoothly. Stakeholders hope this technical boost, combined with the extra month, will finally close the audit‑report gap.
Frequently Asked Questions
Why was the tax audit deadline extended?
The CBDT responded to pressure from chartered‑accountancy bodies and court directives that highlighted technical glitches and filing bottlenecks. Extending the deadline to October 31 gives taxpayers extra time to upload audit reports without incurring penalties.
Which entities are affected by the new deadline?
All taxpayers required to submit a tax audit for FY 2024‑25 – primarily large companies, trusts, partnerships and professionals with turnover above the statutory thresholds – must file by October 31, 2025. Smaller taxpayers not meeting audit thresholds remain unaffected.
What penalties apply if the audit is filed after October 31?
Section 271F of the Income Tax Act imposes a penalty of up to ₹10,000 per day for each day the audit report is late, in addition to interest on any tax shortfall. The board advises taxpayers to meet the new deadline to avoid these charges.
How many audit reports have been filed so far?
As of September 24, 2025, about 4.02 lakh audit reports were uploaded on the e‑filing portal, with more than 60,000 marked as complete. The board expects the numbers to climb sharply before the October 31 cut‑off.
Will there be more extensions in the future?
The CBDT said it will review filing trends after October 31. While another extension is possible if systemic issues persist, officials warn that repeated postponements could undermine tax compliance discipline.