Growing Demands for Tax Audit Due Date Extension

A unified front of professional bodies, including the Institute of Chartered Accountants of India (ICAI), is amplifying calls for an extension of the tax audit report (TAR) and Income Tax Return (ITR) filing deadlines. The current due date for TARs is September 30, with a corresponding ITR deadline of October 31 for audit cases. Citing numerous and persistent technical and systemic issues, these associations argue that the current timelines are insufficient for accurate compliance.

Reasons Cited by Associations for Extension

Professional organizations have sent multiple representations to the Central Board of Direct Taxes (CBDT) and the Ministry of Finance, highlighting a range of difficulties.

• Persistent E-filing Portal Glitches: The most common complaint is the unreliability of the e-filing portal. Professionals report frequent server crashes, session timeouts, slow speeds, and validation errors. These issues are particularly acute during peak filing periods and make it nearly impossible to upload returns and reports.
• Delayed Release of Forms and Utilities: The timely release of ITR and audit forms is crucial for taxpayers and professionals to prepare filings. This year, the release of key forms like ITR-5, ITR-6, ITR-7, and audit forms (3CA/3CB/3CD) was significantly delayed, with some becoming available as late as July and August. This has drastically compressed the compliance window.
• Data Mismatches and Reconciliation Challenges: Discrepancies between data on the portal (e.g., Annual Information Statement (AIS) and Form 26AS) and the taxpayer’s own records are creating major hurdles. Taxpayers are spending significant time and effort reconciling these mismatches, which often include duplicate entries, incorrect reporting, and TDS reflecting under the wrong head.
• Increased Compliance Burden: The tax compliance calendar from July to October is already packed with deadlines for GST, company law filings, and other statutory requirements. Furthermore, the ICAI’s new guidance notes for financial statements for non-corporate entities have added a substantial audit workload. This convergence of deadlines, coupled with the aforementioned glitches, has put immense pressure on professionals.

Representations from Various Associations

The push for an extension is a collective effort, with numerous influential bodies formally requesting relief from the government.

• Karnataka State Chartered Accountants Association (KSCAA): The KSCAA has detailed the challenges in their representation, mentioning the late release of forms, discrepancies in AIS data, and the added audit workload from new ICAI guidance notes. Read: KSCAA Flags Delays in ITR Forms and Portal Glitches
• Advocates Tax Bar Association (ATBA): The ATBA has requested an extension for non-audit ITRs until October 30, tax audit reports until November 30, and ITR filings in audit cases until December 31, citing system glitches and errors in validation. Read: Tax Bar Seeks Extension for ITR, Tax & Transfer Pricing Audit Report due dates
• Central India Regional Council (CIRC) of ICAI: The CIRC has specifically requested an extension of the tax audit report submission deadline from September 30 to December 31. Read: ICAI CIRC Seeks Tax Audit Due Date Extension to 31st December 2025
• All Odisha Tax Advocates Association (AOTAA): Supported by a Member of Parliament, the AOTAA has requested an extension, highlighting portal glitches and disruptions caused by floods in the region. Read: AOTAA Seeks Extension of ITR and Tax Audit Report Filing Deadlines
• Bombay Chartered Accountants’ Society (BCAS): BCAS has also raised concerns over persistent system issues, urging for an extension of the ITR and audit filing deadlines. Read: Extend due dates for filing of ITR and Audit Reports for AY 2025-26: BCAS

Tweets and Social Media Reactions

The frustration is palpable on social media, with many taxpayers and professionals taking to platforms like X (formerly Twitter) to voice their concerns directly to the Income Tax Department and Finance Ministry. Extract of the some of the tweets are as follows-

• The ITR portal is a joke. Crashes, errors, and then a one-day extension? If the system isn’t working, don’t penalize taxpayers. #ExtendDueDate
• My team has been working non-stop for the past 48 hours to file tax audits, but the portal is constantly failing. This is a clear case for a due date extension. The government needs to step in. #TaxAudit #ITR
• For the last two hours, the Income Tax portal has not been working. Is anyone even aware of this? The “record filings” figure is misleading if the system can’t handle the last-minute rush. #ExtendTaxAuditDueDate

The due date for non-audit ITRs was already extended by a day to September 16, but this provided little relief for those who have to file tax audit reports. As of now, the government has not officially announced an extension for the tax audit deadline.