Income Tax: Big news for income tax payers, CBDT has extended the last date for filing audit reports..

There's big news for income taxpayers. The Central Board of Direct Taxes (CBDT) has extended the deadline for filing audit reports. The CBDT has extended the deadline to October 31, 2025. Previously, the deadline for filing audit reports was September 30, 2025. This decision will provide relief to taxpayers and give them more time to prepare their audit reports.

The Rajasthan High Court issued this order while hearing a joint petition filed by the Bhilwara and Jodhpur Tax Bar Associations. Both tax bar associations had filed separate petitions in the Rajasthan High Court seeking an extension of the deadline for filing tax audit reports. Acting on these petitions, the High Court directed the extension of the deadline for submitting audit reports.

The Income Tax Department announced this through its official handle. The department posted on X, writing, "The Central Board of Direct Taxes (CBDT) has decided to extend the due 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 taxpayers specified in clause (a) of Explanation 2 to sub-section (1) of section 139 of the Act."

Who needs to file an Income Tax Audit report?
The tax audit requirements for the assessment year 2025-26 fall under section 44AB and apply to:

Businesses with a turnover of more than ₹1 crore (the limit increases to ₹10 crore if cash transactions are less than 5%).

Professionals with gross receipts of more than ₹50 lakh.

People falling under presumptive taxation (44AD/44ADA/44AE), if they declare profits less than prescribed, and their income falls below the basic exemption limit. More.
Why did the CBDT extend the deadline for filing tax audit reports?
The CBDT had received requests from various professional associations, including chartered accountant bodies, highlighting the difficulties faced by taxpayers and businesses in completing audit reports on time.

According to the tax body, organizations cited several reasons, including disruptions caused by floods and natural disasters in some parts of the country, which have disrupted normal business and commercial activities. This issue has also been raised before the High Courts.

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