CBDT circular audit report extension: Recently, the Central Board of Direct Taxes (CBDT) issued a press release through the Press Information Bureau (PIB),
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officially extending the specified date for furnishing audit reports for the previous year 2024-25 (i.e., Assessment Year 2025-26). Here’s what the official release says, and what you should do in light of the extra time.
Audit date extension 2025: What does the official notification state?
The extension moves the deadline from 30 September 2025 to 31 October 2025 for assessees falling under clause (a) of Explanation 2 to sub-section (1) of section 139 of the Income Tax Act.
“keeping in view the representation of the Tax practitioners and their submissions before the Hon’ble Courts, the ‘specified date’ for furnishing of the report of audit under any provision of the Income-tax Act, 1961, for the Previous Year 2024-25 (Assessment Year 2025-26), in the case of assessees referred to in clause (a) of Explanation 2 to sub-section (1) of section 139 of the Act is extended from 30th September, 2025 to 31st October, 2025”, the government informed in PIB release regarding the Audit report last date 2025.
CBDT circular audit report extension: 5 Smart moves to use this extra time wisely
1. Confirm Applicability Under Section 139 Clause & Audit Reporting Provisions
First, verify whether your business or profession falls under clause (a) of Explanation 2 to sub-section (1) of section 139, which is explicitly referred to in the PIB notification. Audit obligations (under section 44AB) and the form filing (3CA/3CB + 3CD) must be adhered to.
2. Reconcile Books, GST, TDS, Bank Statements
Use the extended window to thoroughly cross-check your books of accounts, GST returns, TDS records, bank reconciliations, and other supporting documents. Any mismatch might lead to scrutiny, so it's better to resolve it before the final audit report submission. Take advantage of the Audit date extension 2025.
3. Prepare Audit Report with All Disclosures
Audit reports (Forms 3CA/3CB + 3CD) require many disclosures — depreciation, related party transactions, inventory, etc. Use the time to ensure none of the required clauses or schedules are omitted or misreported under the prescribed format before the Audit report last date 2025.
4. Document Reasonable Cause – For Section 271B Penalty Defence
Considering the CBDT circular audit report extension, according to the Penalties chart on the official Income Tax Department website, a penalty under Section 271B is applicable for failure to furnish an audit report or conduct an audit under Section 44AB: 0.5% of turnover or receipts (or maximum Rs 1,50,000), whichever is less. If a delay occurs despite your efforts, maintain documentation of reasons (e.g. natural calamity, illness, delay from third parties) to show “reasonable cause” under Section 273B relief (as allowed under the statute).
5. Align With ITR Filing & Other Statutory Deadlines
Note: this Audit date extension 2025 is only for the audit report (31st October) and not necessarily for Income Tax Return (ITR) filing, unless separately extended by CBDT. Use this time to ensure audit data is ready to flow into the ITR and avoid last-minute mismatches.
