As the tax compliance season advances, businesses, professionals and Chartered Accountants across India are focusing on a critical deadline: the due date for filing the tax-audit report under Income‑tax Act, 1961 (in particular, section 44AB). Understanding who it applies to, what the deadlines are, and what penalties await non-compliance is essential for corporate and professional taxpayers. Below is a detailed breakdown geared for an Indian audience.
What is a tax-audit report & when does it apply?
Under section 44AB of the Income-tax Act, certain taxpayers are required to have their accounts audited by a Chartered Accountant and submit a tax-audit report (typically in Form 3CA/3CB along with Form 3CD).
Key criteria include:
- Businesses (non-professionals) whose turnover or gross receipts exceed specified thresholds (for example, ₹1 crore; or ₹10 crore if cash receipts/payments are under 5 %) in a financial year.
- Professionals whose gross receipts exceed ₹50 lakh in a financial year.
- Others who have opted out of certain presumptive taxation schemes or fall in the transfer-pricing categories.
In short: if you are in business or profession and meet the turnover/receipt criteria, a tax audit and its report filing become mandatory.
Deadlines for FY 2024-25 (Assessment Year 2025-26) & recent extension
Original due date
For the financial year 2024-25 (assessment year 2025-26), the standard deadline for submitting the tax-audit report under section 44AB was 30 September 2025.
Extension announced
However, the Central Board of Direct Taxes (CBDT) formally extended the due date to 31 October 2025 for certain categories of assessees (those referred to in clause (a) of Explanation 2 to sub-section (1) of section 139 of the Act)
Media reports and commentary confirm that this extension provides relief to many taxpayers who faced procedural or portal-related delays.
Important nuance: ITR filing deadline
For taxpayers required to get audited, the due date for filing their Income-tax Return (ITR) is typically 31 October 2025 (for FY 2024-25) unless further extended.
It is crucial to note: the audit-report deadline and the ITR-filing deadline are interconnected. If the audit report is not submitted in time, the taxpayer may not be able to finalise their ITR filing correctly.
Significance & impact of this deadline
Compliance & penalty risks
- If a taxpayer fails to furnish the audit report by the due date, the Act prescribes a penalty under section 271B which can be 0.5% of turnover or gross receipts or ₹1.5 lakh, whichever is lower.
- Delay also opens up risks of disallowances (for example, certain deductions may be denied), additional scrutiny and complications in filing
Cause of relief extensions
- The extension from 30 Sept to 31 Oct for FY 2024-25 was largely driven by representations from chartered-accountant bodies, and persistent issues with the e-filing portal, delayed notification of forms and methodology.
Practical significance for Indian businesses & professionals
- Businesses with large turnovers must ensure audits are completed on time (books of account, CA sign-offs, forms 3CA/3CB-3CD) so the audit report can be uploaded/accepted electronically before ITR filing.
- Professionals (doctors, lawyers, architects, CAs, etc) with gross receipts above ₹50 lakh must check applicability and take timely action.
- For firms opting for presumptive taxation, opting out or earning less than specified rates can trigger audit-report requirements; hence planning is critical.
Steps taxpayers should take now
- Ascertain applicability: Review turnover/receipt figures for FY 2024-25. If you cross the threshold, identify that audit is required.
- Engage your CA early: Ensure the CA commences the audit, prepares Form 3CD and the audit report well in advance of the 31 October deadline.
- Portal readiness: Ensure that audit report is uploaded and accepted in your e-filing account; technician delays or CA portal issues have been reported.
- Plan ITR filing: For those requiring audit, plan your ITR filing timeline so you’re ready to file by 31 October 2025.
- Document retention: Keep records of audit, CA sign-offs and audit-report upload confirmation. These may be required in future assessments.
- Stay updated: Monitor official updates from the Income-tax Department and CBDT for any further changes or extensions.
Evergreen takeaways for tax season preparedness
- Always check each year’s tax calendar and not assume deadlines remain unchanged from previous years — extensions do happen but cannot be presumed.
- Audit-report obligation is independent of ITR-filing deadline — missing one can affect the other.
- Penalties may be moderate in amount, but the knock-on effect (delay in return, scrutiny, blocked refunds) can be significant.
- Use technological and procedural readiness (CA coordination, e-filing login, document preparation) to meet deadlines rather than rely on last-minute extensions.
Final word
For many Indian businesses and professionals, the audit report submission under section 44AB acts as a gating step in the compliance chain. With the 31 October 2025 deadline now in force for FY 2024-25 (assessment year 2025-26) for audit-report-applicable assessees, timely initiation of audit processes, coordination with CAs and planning ITR filing are more important than ever. Failing to act can lead not only to penalties but to wider compliance disruption. Being prepared early is the best strategy.
Last Updated on: Thursday, October 30, 2025 3:57 pm by Sakethyadav | Published by: Sakethyadav on Thursday, October 30, 2025 3:57 pm | News Categories: News