Income Tax Audit Filing Deadline Nears: Only Two Days Left Until October 31; Check Penalties

Income Tax Audit Filing Deadline: Taxpayers whose accounts need to be audited—such as companies, proprietorships, and working partners in firms—have only two days until October 31, 2025, to file their

income tax returns (ITR) for the financial year 2024-25 (assessment year 2025-26). In a major relief for tax professionals, the Central Board of Direct Taxes (CBDT) on September 25 had extended the deadline to submit tax audit reports (TARs) from September 30 till October 31, 2025.

Penalties if Someone Misses Tax Audit Filing Deadline?

Gaurav Jain, Partner, Direct Tax, Forvis Mazars India told News18 that if a taxpayer fails to file the tax audit report within the prescribed due date under Section 44AB of the Income Tax Act, 1961 they may face a penalty under Section 271B of the Act equal to 0.5% of total sales, turnover, or gross receipts, subject to a maximum of Rs. 1,50,000. 

However, the penalty may be waived under section 273B if the delay occurred due to a reasonable cause such as technical issues or unavoidable circumstances.

“Apart from the monetary penalty, non-filing of the audit report can attract scrutiny from the Income Tax Department and indicate non-compliance with statutory obligations, potentially affecting the taxpayer’s credibility in financial and regulatory matters,” Jain added.

Will An Extension Or Further Extend Of Deadline Possible?

Jain added that he due date for filing the tax audit report is fixed by law (generally September 30 or October 31 if covered by a transfer-pricing report, depending on the Assessee type) and only the Central Board of Direct Taxes (CBDT) has the authority to extend it through an official notification or circular usually in cases of widespread issues like technical glitches or natural calamities. 

“Therefore, unless the CBDT announces a blanket extension, taxpayers must adhere to the prescribed deadline, as there’s no provision for individual or case-specific extensions,” he concluded.

Deadline for Those with International Dealings

If a taxpayer is involved in international transactions or certain specified domestic transactions, they are required to submit a report under Section 92E. In this case, the due date for filing ITR is November 30, 2025.

To stick to this timeline, their audit report must be submitted by October 31, 2025. Just like in other categories, the government has not given any update about extending this due date.