The Karnataka High Court has extended the deadline for filing Tax Audit Reports (TAR) to October 31, 2025.
The order came after a petition by the Karnataka State Chartered Accountants Association (KSCAA), which requested more time to complete audit filings. Earlier, the Rajasthan High Court had given a similar relief.
Court’s Observation
A bench of Justices Pushpendra Singh Bhati and Bipin Gupta noted that the CBDT (Central Board of Direct Taxes) has often provided such extensions in the past.
The order was passed following a petition filed by the Tax Bar Association, Jodhpur. Similar petitions are currently being heard in other High Courts across India.
Who Gets the Relief?
At present, the extended deadline applies only to taxpayers in Karnataka and Rajasthan. For the rest of the country, the extension will be valid only if the CBDT issues an official notification.
Challenges in Filing
Experts say taxpayers and auditors are facing multiple hurdles, including:
Login failures on the income tax e-filing portal
Slow portal speed
Difficulty in accessing key documents such as AIS
Delay in release of utilities for ITR-5, ITR-6, and ITR-7
Extra workload due to new reporting requirements in Form 3CD
Who Needs a Tax Audit?
Businesses with turnover above ₹1 crore must get audited
If cash transactions are less than 5% of total, the limit rises to ₹10 crore
Professionals (doctors, lawyers, architects, CAs) with income over ₹50 lakh must get audited
Taxpayers under presumptive taxation (Section 44ADA) may also need an audit if certain conditions are met
Penalty for Delay
Failure to file the Tax Audit Report on time may lead to a penalty of 0.5% of turnover or ₹1.5 lakh, whichever is lower.
