CBDT extends last date for filing Tax Audit Report: Big relief to taxpayers for AY 2025-26

CBDT extends  last date for filing Tax Audit Report: Big relief to taxpayers for AY 2025-26

New Delhi, 25 September 2025 – This news is a sigh of relief for taxpayers and tax professionals.  The Central Board of Direct Taxes (CBDT) has issued an official press release  extending the due   date for filing Tax Audit Reports (TARs) for  the assessment year 2025-26  from 30 September 2025 to 31 October 2025.

This decision has given millions of businessmen, professionals and tax practitioners an extra month.

Why is the decision of CBDT  important?

Filing a tax audit report in India is not just a formality, but it is a legal obligation under the Income Tax Act, 1961. Section 139(1) and the accompanying explanations (Explanation 2, sub-section (1)) require certain taxpayers  to submit the audit report  on time.

• The earlier scheduled date was: 30 September 2025
• The new scheduled date will be: 31 October 2025

Why did CBDT do this?

The CBDT  had received representations from various Chartered Accountant Bodies and Professional Associations. These organizations stated that—

• Circumstances such as floods and natural calamities disrupted normal business activities in many states.
• Taxpayers and CAs  were facing difficulties in completing the audit work and filing the report on time.
• The issue  also reached several high courts.

In view of these reasons, the CBDT decided to provide relief.

Status of e-Filing Portal

The CBDT also clarified in the press release that the Income-tax e-filing portal is fully stable and working successfully.

• So far, 4.02 lakh Tax Audit Reports (TARs) had been uploaded as of  24 September 2025.
• On 24th September 2025 alone, more than 60,000 TARs were filed on the portal.
• As of 23rd September 2025, 7.57 crore ITRs (Income Tax Returns) have also been successfully filed.

This proves that  there are no problems like technical glitches or portal failures. The CBDT clarified that the decision to extend the deadline was taken not for technical reasons, but in view of the extraordinary circumstances faced by taxpayers and professionals.

Which taxpayers will benefit?

This extension is mainly for taxpayers who  have to file audit reports.

These include:

1. Business Entities – whose turnover  exceeds the limit prescribed under Section 44AB.

2. Professionals – such as doctors, lawyers, Chartered Accountants, Engineers, whose gross receipts  exceed the legal limit.

3. Companies & LLPs – which   are required to be audited.

4. Certain Assessees under Presumptive Taxation – where Books of Accounts and Audit become essential.

Key Benefits of This Decision

1. Extra time – taxpayers and professionals will get another chance to complete their reports and file them on time.

2. Avoidance of Penalty  – Failure to file the audit report  within the stipulated time  attracts a penalty under Section 271B. Taxpayers will be saved from this problem by getting an extension.

3. Natural Calamity Impact    Addressed – This judgment shows that the government  takes care of the interests of taxpayers  in extraordinary circumstances.

4. Business Continuity – Many businesses whose operations were affected due to recent disasters will now be able to complete their compliance by taking time  .

What should taxpayers do?

If you have not yet filed the Audit Report (TAR), contact your Chartered Accountant immediately.

Finalize your Books of Accounts and keep the necessary documents ready.

File TAR and ITR on the Income-tax portal well in advance to avoid last minute rush and server load.

If you have been affected by a natural calamity or any other genuine reason, you now have an additional month to complete your compliance.

CBDT Message

The CBDT has also reiterated that—

• Filing on the portal  is going smoothly.
• The bulk of the Audit Reports and ITRs  have already been filed.
• The deadline extension  has been taken only  in view of the practical  difficulties of taxpayers and professionals.

Therefore, taxpayers are expected to make the right use of this opportunity and  file all their audit reports  before 31st October 2025.

Conclusion

This move of CBDT has brought a sigh of relief for taxpayers and tax professionals.  By extending the deadline  for filing the audit report  by a month, the government has proved that it  is sensitive to the problems of taxpayers.

Although, the e-filing system  is already smooth and technically enabled, yet this extension  is absolutely necessary and welcome given the exceptional circumstances and court submissions.

Now the new last date for Tax Audit Report (TAR) is: 31st October 2025.