Tax Audit Deadline: Why Extension Beyond Sept 30 Is Urgently Needed

Extend Tax Audit Deadline and Waive Advance Tax Interest: A Call for Immediate Government Action

As the September 30, 2025, tax audit deadline approaches, taxpayers and professionals across India are having sleepless nights and are grappling with unprecedented challenges that warrant an urgent extension of the deadline. Additionally, the imposition of interest on defaults in advance tax payments due on September 15, 2025, is causing undue hardships to the tax payers without there being no fault from their side. The government must act swiftly and without even a delay of a single day to extend the tax audit deadline and waive interest on advance tax defaults, ensuring fairness and supporting taxpayers in these trying times, who honestly contribute to the advancement and development of the country.

It is high time when TAX PAYERS CHARTER IS IMPLEMENTED IN TRUE LETTER AND SPIRIT. In our country roughly 8.09 crore people file their returns including tax audits wherein our country has a population of more than 1.451 billion people. Tax Payers should be given utmost facilities by the Government and should not burden them under the mountain of compliances to be done with portal full of glitches.

Recent developments have forced the taxpayers /tax professionals to introspect that do we actually matter for the Government?

Recently announcement was made at the 11^th Hour as for extension of non auditable tax payers return filing. The extension was given just for 1 day despite the portal becoming completely defunctional and the announcement was done at 11.55 pm on 15^th September itself. Irony is that on 16^th September 2025 also the income tax portal was not running smoothly.

Why the demand of Immediate Extension in the Tax Audit Deadline is there?

The tax audit process under Section 44AB of the Income Tax Act requires businesses and professionals with turnovers exceeding specified thresholds to submit audited financial statements by September 30. This year, however, several factors have made compliance within this timeline particularly challenging:

Technical Glitches in the Income Tax Portal: The e-filing portal, critical for submitting tax audit reports, has faced recurring technical issues, including slow processing, login failures, and errors in form submissions including payment of challans. These disruptions have delayed the work of chartered accountants and taxpayers, who are struggling to meet the deadline despite diligent efforts.

Delay In Issuing Utilities: Various returns and tax audit forms utilities were issued late by the department, which resulted in the professionals and tax payers to remain engrossed in the return filing of non audit cases only, whose last date was 15^th September,2025 extended to 16^th September,2025.

Increased Compliance Burden: Recent changes in tax laws, such as updates to the Tax Audit Report (Form 3CD) and revised reporting requirements, have added complexity to the audit process. These changes require additional time for taxpayers and auditors to ensure accuracy and compliance, particularly for small and medium-sized enterprises with limited resources.

Festive Season Overlap: September 2025 coincides with major festivals like Ganesh Chaturthi and Navratri, which are widely celebrated across India. These festivities reduce effective working days, as businesses and professionals prioritize cultural and family obligations, further straining their ability to meet the deadline.

Economic Recovery Pressures: Many businesses are still recovering from economic disruptions caused by global and domestic challenges. The pressure to meet stringent compliance deadlines diverts resources from core operations, hampering growth and stability.

Devastating Floods Across the Country: Severe floods triggered by heavy monsoon rains have ravaged northern and other parts of India in August and September 2025, affecting millions and causing widespread disruption. These disasters have displaced thousands, halted business operations, and diverted resources toward relief efforts, making it impossible for affected taxpayers—especially in agriculture, retail, and small enterprises—to complete audits on time. Extending the deadline would acknowledge this humanitarian crisis and prevent further penalties on those already suffering.

Extending the tax audit deadline to at least 30th November, 2025, would provide much-needed relief to taxpayers and auditors. It would ensure accurate reporting, reduce errors caused by rushed submissions, and alleviate the stress of navigating technical and procedural hurdles.

Why Waive Interest on Advance Tax Defaults?

The advance tax payment deadline of September 15, 2025, required taxpayers to pay a portion of their estimated tax liability for the financial year. Failure to meet this deadline attracts interest under the Income Tax Act. However, penalizing taxpayers with interest in the current scenario is neither fair nor pragmatic. The failure happened because 15^TH September was the last day to submit the tax returns for non audit tax payers, portal was full of glitches and challan was not being generated by portal.

The Need for Immediate Announcement

The government must announce these measures as soon as possible to provide clarity and relief to taxpayers and professionals. Delaying the announcement risks creating confusion and increasing non-compliance due to uncertainty. An early announcement will allow businesses and auditors to plan effectively, reduce last-minute rushes, and ensure high-quality submissions. Moreover, a timely decision will reinforce public trust in the government’s responsiveness to taxpayers’ needs. It will also support the broader goal of fostering a business-friendly environment, which is crucial for sustaining India’s economic growth trajectory.

Extending the tax audit deadline beyond September 30, 2025, and waiving interest on advance tax defaults for September 15, 2025, are pragmatic steps to address the genuine challenges faced by taxpayers. These measures will promote compliance, reduce financial strain, and uphold fairness in the tax system. The government must act swiftly, ideally within the next few days, to announce these relief measures and provide taxpayers with the certainty and support they need. By doing so, it can demonstrate its commitment to balancing revenue objectives with the welfare of its citizens and businesses. This article reflects the urgent need for taxpayer-friendly policies in light of current challenges and calls for immediate government action.