CBDT EXTENDS DUE DATES FOR TAX AUDIT REPORT AND ITR FILING FOR AY 2025–26

The Central Board of Direct Taxes (CBDT) has once again provided relief to taxpayers and professionals by extending the statutory due dates for filing tax audit reports and Income Tax Returns (ITR) for Assessment Year (AY) 2025–26.

This decision was announced through Circular No. 15/2025 dated 29 October 2025 (Visit: https://incometaxindia.gov.in/communications/circular/circular-15-2025.pdf) and a corresponding press release issued on the same day. The extension comes in response to widespread representations from chartered accountants, organizations, and taxpayers who highlighted challenges related to ongoing litigation, audit complexities, and compliance burdens.

The changes are expected to reduce the compliance pressure on taxpayers and professionals, allowing them more time to compile accurate financial information, complete audits, resolve queries, and file returns without the fear of penalties. TMWala assists businesses during such extended periods by offering structured support for gathering documents, completing audits, and ensuring timely e-filing.

TAX AUDIT REPORT DUE DATE EXTENSION

The Tax audit report due date extension plays a crucial role in easing the burden on entities whose accounts must undergo audit as per Section 44AB of the Income Tax Act. As per the revised schedule, the due date for furnishing the Tax Audit Report (TAR) for AY 2025-26 has been moved from 31 October 2025 to 10 November 2025.

This extension applies to all taxpayers who fall under mandatory tax audit requirements, including:

• Businesses with turnover exceeding the statutory threshold.
• Professionals whose gross receipts cross the prescribed limit.
• Taxpayers opting out of presumptive taxation schemes under Sections 44AD, 44ADA, or 44AE, thereby triggering a mandatory audit.

The extra time allows auditors and taxpayers to address discrepancies, complete ledger scrutiny, review compliance with accounting standards, and ensure that the audit report accurately reflects the financial activities of the entity. Missing this revised due date could result in consequences under Section 271B, making it essential for businesses to take prompt action. Services such as those provided by TMWala simplify this process by coordinating documentation, preparing audit schedules, and ensuring that reports are submitted correctly and on time.

CHARTERED ACCOUNTANT FOR TAX FILING

A chartered accountant for tax filing serves as a critical partner for taxpayers across categories. These professionals are trained not only in accounting but also in taxation, regulatory compliance, and financial advisory. Their expertise ensures that income, deductions, exemptions, and tax liabilities are computed accurately in accordance with the Income Tax Act.

Chartered accountants play several vital roles during the audit and ITR season:

• Reviewing business books and financial documents.
• Preparing tax audit reports where applicable.
• Ensuring the correctness of every figure submitted in the ITR forms.
• Advising on tax planning strategies to minimize liabilities within the legal framework.
• Assisting in responding to queries issued by the Income Tax Department.

They also guide taxpayers through common challenges such as interpreting new circulars, applying updated provisions, and resolving portal-related issues. As deadlines shift and compliance requirements evolve, platforms like TMWala work closely with chartered accountants to provide taxpayers with seamless, end-to-end support in documentation, filing, and audit management.

INCOME TAX RETURN LAST DATE

Under the Income Tax Act, certain taxpayers are required to have their accounts audited and submit the audit report in the prescribed forms (Form 3CA/3CB along with Form 3CD) within the statutory timeline. The law defines the “specified date” for filing this audit report as the day falling one month before the due date for filing the income tax return under Section 139(1).

To illustrate, if the due date for filing the ITR under Section 139(1) is 10 December 2025, then the corresponding audit report must be filed on or before 10 November 2025. This one-month gap is intentionally built into the law to ensure that the audit is completed first, giving adequate time to incorporate all audited figures and observations while preparing the return of income.

The rationale behind placing the audit report deadline before the ITR deadline is to promote accuracy, reduce last-minute errors, and allow taxpayers to finalize their returns based on verified financial statements.

PENALTY FOR LATE ITR FILING

The Penalty for late ITR filing remains a key concern for taxpayers, especially those covered under audit requirements. If a taxpayer fails to furnish the tax audit report by the extended deadline of 10 November 2025, several financial and legal implications may arise.

One of the primary consequences is a violation of Section 44AB, which mandates that audit reports be filed within the specified timeline. Failure to do so may attract penalty provisions under Section 271B, which empower the Assessing Officer to levy a penalty of 5 percent of total turnover or gross receipts, subject to a maximum limit of ₹1,50,000.

However, taxpayers need not panic in genuine cases. Section 273B provides relief by allowing the waiver of penalties if the taxpayer can demonstrate a “reasonable cause” for delay. Valid reasons may include:

• Severe illness or medical emergencies.
• Technical failures of the e-filing portal.
• Loss of financial data due to hardware issues.

Despite this provision, it is always advisable to avoid delays to prevent complications and ensure smooth compliance with tax obligations. Timely coordination with CAs and professional filing partners such as TMWala can help taxpayers avoid such penalties by ensuring that both the audit report and the ITR are filed before the due dates.

CONCLUSION

The recent extensions announced by the CBDT aim to provide necessary breathing space to taxpayers, auditors, and tax professionals who face workload pressure and compliance complexities during peak filing seasons. With the tax audit report due date extended to 10 November 2025 and the ITR filing deadline pushed to 10 December 2025 for audit cases, taxpayers now have more time to prepare accurate records and complete filing.

Nevertheless, timely action remains essential because missing the revised deadlines can lead to penalties, interest, and loss of certain tax benefits. In this compliance-heavy environment, organizations like TMWala offer structured support through expert guidance, document management, and continuous tracking of filing progress.

With proper planning, professional assistance, and awareness of the revised dates, taxpayers can meet all requirements smoothly and avoid unnecessary penalties or complications.

FAQs

1. What due dates has the CBDT extended for AY 2025–26?
   The CBDT has extended the tax audit report date to November 10, 2025, and the ITR filing date for audit cases to December 10, 2025.
2. Why were the due dates extended?
   The extension was granted due to multiple representations citing litigation, audit workload, and compliance challenges.
3. Who must file a tax audit report?
   Businesses and professionals exceeding the prescribed turnover or opting out of presumptive taxation are required to file a tax audit report.
4. What forms are used for tax audit submission?
   The audit report is furnished in Form 3CA/3CB along with Form 3CD.
5. What is the “specified date” under Section 44AB?
   It is the date one month before the ITR due date under Section 139(1).
6. Why must the audit report be filed before the ITR?
   The one-month gap ensures audited figures are available for accurate ITR filing.
7. What is the penalty for filing the audit report late?
   A penalty under Section 271B may be imposed, up to ₹1,50,000 or 5% of turnover/gross receipts.
8. Can penalties be waived for late filing?
   Yes, under Section 273B, penalties can be waived if the taxpayer proves reasonable cause.
9. How can a chartered accountant assist during the filing season?
   They help with audit preparation, tax calculations, compliance review, and resolving income tax queries.
10. How can TMWala help taxpayers?
    TMWala offers assistance with documentation, audit coordination, and timely filing to help avoid penalties.