If your business or firm’s accounts need to be audited, time is running out! Taxpayers such as companies, proprietors, and working partners in firms have only till October 31, 2025, to file their Income Tax Return (ITR) for the financial year 2024–25 (assessment year 2025–26).
Earlier, the Central Board of Direct Taxes (CBDT) had given taxpayers a breather by extending the deadline to submit Tax Audit Reports (TARs) from September 30 to October 31, 2025.
What Happens If You Miss the Tax Audit Deadline?
Missing the deadline can be costly.
According to Gaurav Jain, Partner, Direct Tax, Forvis Mazars India, failing to submit the audit report on time under Section 44AB of the Income Tax Act, 1961, can result in a penalty under Section 271B.
The penalty equals 0.5% of total sales, turnover, or gross receipts, up to a maximum of Rs 1,50,000.
However, there’s some relief.
Under Section 273B, the penalty may be waived if there’s a reasonable cause for the delay, such as technical issues or unavoidable circumstances.
Beyond monetary penalties, non-filing can attract scrutiny from the Income Tax Department, signaling non-compliance and affecting your financial credibility.
Will the Deadline Be Extended Again?
Many taxpayers are hoping for another extension — but it’s unlikely.
As Jain explains, the filing date for tax audit reports is set by law and can only be extended by the CBDT through an official circular.
Extensions are usually granted only in exceptional situations, such as technical glitches or natural disasters.
So unless CBDT issues another notification, taxpayers must stick to the October 31 deadline.
There’s no provision for individual extensions, so filing on time is the safest bet.
What About Those With International Transactions?
If your business has international dealings or specific domestic transactions, you must submit an additional report under Section 92E.
For these taxpayers, the ITR filing deadline is November 30, 2025.
To meet that date, the audit report must also be filed by October 31, 2025.
As of now, there’s no announcement of any further extension from the government.
