Tax Audit Extension: CBDT Extends Due Date to Oct 31, 2025

The Central Board of Direct Taxes (CBDT) has announced a tax audit extension, moving the due date for filing reports for FY 2024–25 to October 31, 2025. This decision offers short-term relief to professionals and businesses facing heavy compliance schedules. However, October is set to remain a challenging month, with overlapping deadlines for other statutory filings and fewer working days due to the festive season.

CBDT Announcement and Court Context

The tax audit extension was confirmed after a hearing in the Delhi High Court, where the CBDT requested additional time to review earlier decisions from the Rajasthan and Karnataka High Courts. Therefore, both courts had already allowed the deadline to move forward. 

Furthermore, the CBDT also noted that the e-filing portal is running smoothly. Till now, it has processed over 4 lakh tax audit reports and more than 7.5 crore income tax returns.

October Compliance Crunch

While the tax audit extension offers short-term relief, October is now considered the busiest month for compliance. Alongside tax audit reports, deadlines for income tax returns, trust renewals, transfer pricing cases, and GST filings will also fall in the same period. 

Adding to the pressure, several holidays linked to the festive season will reduce the number of working days. Thus, businesses and professionals have less time to meet multiple requirements.

Penalties and Consequences

Missing the extended deadline can lead to significant penalties that are: 

• Under current rules, a delay in submitting the tax audit report may result in a fine of up to ₹1.5 lakh or 0.5% of the turnover, whichever is lower. 
• With several compliance requirements in October, any lapse could add financial strain for businesses already managing tight schedules.

Final Outlook

The tax audit extension gives immediate relief, but it also shifts the weight of compliance into a shorter window. October will test how well systems, professionals, and taxpayers can handle overlapping obligations in a compressed timeline. At the moment, it’s more about managing capacity during peak demand, where preparation and coordination across the ecosystem are required. 

Source: MoneyControl

Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.