Direct Tax Alert
CBDT extends due date for filing tax audit reports for FY 2024-25

BACKGROUND

Under section 44AB¹ of the Income-tax Act, 1961 (IT Act), the ‘specified date’ for filing tax audit reports is one month prior to the due date for furnishing the return of income under section 139(1) of the IT Act. Accordingly, in the case of taxpayers referred to in clause (a) of Explanation 2 to section 139(1)² of the IT Act, the due date of furnishing tax audit reports for the FY 2024-25 is 30 September 2025.

The Central Board of Direct Taxes (CBDT) received representations from various professional associations, including Chartered Accountant bodies, highlighting the difficulties faced by taxpayers and practitioners in completing tax audit reports within the prescribed timelines. The challenges were attributed to disruptions caused by floods and other natural calamities in certain parts of the country, which impeded normal business and professional activities. The matter was also brought before certain High Courts.

In view of the representations received from tax practitioners and the directions of the Karnataka and Rajasthan High Courts, the CBDT has issued a Press Release³ and Circular⁴ extending the due date for furnishing the tax audit reports for FY 2024-25 in the case of taxpayers referred to in clause (a) of Explanation 2 to section 139(1) of the IT Act from 30 September 2025 to 31 October 2025.

BDO INDIA COMMENTS

This extension in the due date for filing tax audit reports is a welcome move expected to address the concerns expressed by stakeholders who were facing genuine difficulties in completing audits within the original due date.

It may be noted that extension only applies with regard to furnishing of tax audit reports. It does not cover filing of other forms such as Forms 26QB, 26QC, 27Q, etc. or submission of Income Tax Returns. Further, as a result of this change, the due dates for furnishing the tax audit report and filing return of income for taxpayers covered under clause (a) of Explanation 2 to section 139(1) of the IT Act fall together on the same date i.e. 31 October 2025, unless the due date for filing return of income is extended later.