By Neelanjit Das

Copyright indiatimes

The Central Board of Direct Taxes (CBDT) has decided to extend the specified date for filing various audit reports for the Previous Year 2024–25 (Assessment Year 2025–26), from September 30, 2025 to October 31, 2025, for assessees referred to in clause (a) of Explanation 2 to sub-section (1) of section 139 of the Income Tax Act, 1961.Income Tax GuideIncome Tax Slabs FY 2025-26Income Tax Calculator 2025New Income Tax Bill 2025Income Tax Audit due date extended for AY 2025-26In a press release dated September 25, 2025, CBDT said:CBDT extends specified date for filing of various reports of audit for the Assessment Year 2025-26The ‘specified date’ of furnishing of the report of audit under any provision of the Income-tax Act, 1961, for the Previous Year 2024-25 (Assessment Year 2025-26), in the case of assessees referred to in clause (a) of Explanation 2 to sub-section (1) of section 139 of the Act, is 30th September, 2025.The Board has received representations from various professional associations, including Chartered Accountant bodies, highlighting certain difficulties being faced by taxpayers and practitioners in timely completion of audit report. The reasons cited in these representations include disruptions caused by floods and natural calamities in certain parts of the country, which have impeded normal business and professional activity. This matter has also come up before High Courts.It is clarified that the Income-tax e-filing portal has been operating smoothly and without any technical glitches and the Tax Audit Reports are being uploaded successfully. The system is stable and fully functional, enabling submission of various statutory forms and reports. At the close of 24th September, 2025 4,02,000 Tax Audit Reports (TARS) were uploaded with over 60,000 Tax Audit Reports (TARs) uploaded on 24th September, 2025. Furthermore, more than 7.57 crore ITRS have been filed till 23rd September,2025.However, keeping in view the representation of the Tax practitioners and their submissions before the Hon’ble Courts, the ‘specified date’ for furnishing of the report of audit under any provision of the Income-tax Act, 1961, for the Previous Year 2024- 25 (Assessment Year 2025-26), in the case of assessees referred to in clause (a) of Explanation 2 to sub-section (1) of section 139 of the Act is extended from 30th September, 2025 to 31st October, 2025.CA Ashish Niraj, Partner, A S N & company, says: ‘ Extension of due date for Tax Audits is a very welcome step. This year there was big panic among Tax professionals and Business Entities as Less than 10% Tax Audit reports were submitted till 23rd September, it was almost impossible to upload 90% TAR in last 7 days. 15th September was last date for Individual ITR and once Tax Professionals got free from it, they started Tax Audits. Now the dates are extended they can upload Tax Audit Reports with more accuracy.Who needs to file an income tax audit report for AY 2025-26?Chartered Accountant Abhishek Soni, co-founder, Tax2Win, says: Tax audit comes under Section 44AB. It is required for:Businesses with turnover above Rs 1 crore (limit increases to Rs 10 crore if cash transactions are ≤ 5%).Professionals with gross receipts above Rs 50 lakh.People under presumptive taxation (44AD/44ADA/44AE), if they declare lower profits than prescribed, and their income exceeds the basic exemption limit.What happens if the tax audit report is submitted after the deadline?The penalty for submitting an tax audit report after the deadline is 0.5% of your turnover or gross receipts, subject to a maximum of Rs 1.5 lakh. This penalty is discretionary.Soni says that if you miss the October 31, 2025 deadline to file your tax audit report under Section 44AB, the tax department may impose a penalty under Section 271B.Also Read : Brother sold 50% of late father’s property despite father not giving him any share in registered will, wins case in Supreme Court due to this reason“This penalty is 0.5% of your turnover or gross receipts, capped at Rs 1.5 lakh, unless you can demonstrate a reasonable cause. For instance, a serious illness, natural disaster, or technical glitch. Even if the penalty applies, you can still submit the audit report later, but the risk of penalty remains unless adequately justified to the tax officer.”Also read: Higher EPS pension for EPF members allowed by Punjab & Haryana High Court for pre-2014 retired employees with these three conditions