Request for Extension of Tax Audit Report Due Date for AY 2025-26

The Sales Tax Bar Association (Regd.), a large and long-standing association of tax professionals, has formally requested that Union Finance Minister Smt. Nirmala Sitharaman extend the due date for filing Tax Audit Reports (TAR) for the Assessment Year 2025-26 to November 15, 2025. This request follows the recent extension of the Income Tax Return (ITR) due date for non-audit cases to September 15, 2025. The association highlights several challenges, including a problematic clash of timelines, as the current TAR due date of September 30, 2025, provides insufficient time to complete audits after the ITR deadline. They also cite ongoing technical glitches on the e-filing portal, recent changes in reporting formats, and the delayed release of essential utility schemas and excel sheets as key issues hindering timely compliance. The letter emphasizes that an extension is necessary for accurate reporting and to prevent unnecessary stress and panic among taxpayers and professionals caused by last-minute notifications. The association requests that the government issue the extension notification well in advance to ensure a smooth and fair compliance process.

Sales Tax Bar Association (Regd.)

STBA/2025/25 Dated: Sept 8, 2025

To
Smt. Nirmala Sitharaman
Hon’ble Union Minister of Finance
Government of India
North Block, New Delhi

Subject: Representation Seeking Extension of Due Date for Filing of Tax Audit Reports for Assessment Year 2025-26 under the Income Tax Act, 1961

Hon’ble Madam,

1. Sales Tax Bar Association (Regd.), having been established on 30th Mach, 1957, is one of the oldest and the largest Association of Tax Professionals in the country. The Bar represents majority of members of various professions practicing in Direct & Indirect Taxes. Sales ‘Fax Bar Association (Regd.) plays a major role in revenue collection by the Present membership of our Bar Association is around 2000 comprising of Advocates, CA’s and Tax Practitioners. Some of our members were elevated as Judges of the Hon’ble Delhi High Court and elevated a!; Judges of the Hon’ble Supreme Court. Some of our members further were also selected for appointment as Member of the Income Tax Appellate Tribunal (ITAT) and Goods & Services Tax Appellate Tribunal (GSTAT).

2. The Association is actively engaged in the taxation sector, most respectful! submit this representation on behalf of our members and the larger fraternity of taxpayers. The Association, with its legacy of more than six decades, has consistently endeavored to act as a vital link between taxpayers, professionals, and the Government in matters of taxation and compliance.

3. At the outset, we place on record our appreciation for the timely extension of the due date for filing of Income Tax Returns in non-audit cases from July, 2025 to 15th September, 2025. The said measure has provided much needed relief to taxpayers and professionals in the face of challenges.

4. However, it is respectfully submitted that, despite such relief, critical operational and systemic constraints continue to undermine the capacity of tax professionals and taxpayers as the current timelines for compliance under the Income Tax Act, 1961, particularly with reference to filing of Tax Audit Reports (TAR), are impracticably close to the extended due date for filing of Income Tax Returns (ITR) in non-audit cases.

5. The following issues merit kind consideration:

1. Clash of Timelines: With the extended due date for filing ITRs for non-audit cases now set at 15th September, 2025 the statutory due date for filing Tax Audit Reports continues to remain at 30th September, 2025, thereby leaving no effective gap for completion of audits. Traditionally, when the ITR due date was 31st July, sufficient time was provided thereafter until 30th September for completion of audits. This parity is disturbed in the present situation.

2. Technical Glitches: Despite best efforts, the Income Tax e-filing portal continues to experience technical glitches, impeding smooth filing of both ITRs and Tax Audit Reports, thereby adversely affecting timely compliance.

3. Recent Reporting Changes: The changes in the reporting formats, particularly in the case of audits of non-corporate entities, necessitate additional time for proper understanding, reconciliation, and reporting to ensure correctness and accuracy.

4. Last-Minute Notifications: Past experience shows that issuance of extension notifications at the eleventh hour causes unnecessary panic among taxpayers and professionals, leading to stress and compromised quality of compliance.

5. Delayed Release of TAR Utility: We regret to draw attention to the somewhat belated availability of key utilities required for compliance. Specifically, the Schema / Excel utilities for TAR / ITR Forms essential for reporting complex income streams and audit reconciliation–were released only in the month of August 2025, causing an unavoidable delay in initiating audit processes. This significantly truncates the effective compliance window between 15 September (for ITR filing) and 30 September (for TAR filing).

Request

In view of the foregoing, and in the interest of justice, equity, and fair compliance, we most humbly pray that your good office may kindly:

• Extend the due date for filing of Tax Audit Reports for Assessment Year 2025­26 under the Income Tax Act, 1961, up to 15th November, 2025, in line with the earlier parity wherein adequate time was allowed between ITR filing and Tax Audit compliance.
• Ensure issuance of such notification well in advance so as to avoid uncertainty and hardship to taxpayers and. professionals alike.

Such an’ extension shall not only facilitate accurate and quality reporting but shall also strengthen the relationship of mutual trust and cooperation between the tax administration and stakeholders.

With utmost respect and highest regard,

Yours truly,

[Sanjay Sharma]
President
(M): 9810071545

[Narendra Kr. Sharma]
Secretary
(M): 9811949733

CC to: The Chairman, CBDT, North Block, Central Secretariat, New Delhi-110001