Income tax audit deadline extended for AY 2025-26: CBDT pushes due date to October 31.
Thank you for reading this post, don't forget to subscribe!The Central Board of Direct Taxes (CBDT) has announced a one-month extension for filing various audit reports and tax returns for the Assessment Year (AY) 2025-26. The new deadline is now October 31, 2025, a change from the previous September 30 due date.
The decision was made after professional bodies, including chartered accountants, and taxpayers highlighted significant challenges in completing audits on time. These difficulties stemmed from several factors, including:
- Disruptions from natural calamities: Floods and other natural disasters in various regions caused business and professional activity to stall.
- Issues with the e-filing portal: Despite the Income-tax Department’s claims of a smooth-running portal, practitioners reported persistent glitches and delayed utility releases, which complicated the filing process.
The extension is a major relief for businesses and professionals facing these genuine hardships.
Who needs a tax audit?
According to Section 44AB of the Income-tax Act, a tax audit is mandatory for:
- Businesses with an annual turnover exceeding ₹1 crore. The threshold increases to ₹10 crore if cash transactions (receipts and payments) are kept to a minimum (under 5% of the total).
- Professionals like doctors, lawyers, and architects with an annual income over ₹50 lakh.
- Certain taxpayers opting for a presumptive taxation scheme, such as Section 44ADA, if specific conditions are not met.
