A Welcome Move for Businesses and Professionals
In a significant relief to taxpayers and auditors alike, the Central Board of Direct Taxes (CBDT) has extended the due date for filing Income Tax Returns (ITRs) for assessees whose accounts are required to be audited. The new deadline for filing returns under Section 139(1) of the Income Tax Act has been extended to December 10, 2025, from the earlier date of October 31, 2025.
The decision, officially notified through a CBDT circular, comes after weeks of appeals by professional bodies and multiple court directives urging more time for the completion of tax audits.
Audit Report Due Date Also Extended
In addition to extending the ITR filing deadline, the government has also relaxed the deadline for submitting tax audit reports. Businesses and professionals falling under the audit category can now submit their audit reports until November 10, 2025.
The extension provides much-needed breathing space for accountants and auditors who had been facing challenges meeting earlier, tight deadlines due to workload, system glitches, and ongoing assessments.
Why the Extension Was Needed
Several High Courts — including the Punjab & Haryana, Himachal Pradesh, and Gujarat High Courts — intervened after taxpayers filed petitions, citing insufficient time between the audit report deadline and the ITR filing date.
The courts observed that the time gap between the two compliance deadlines should be at least one month to ensure quality audits and error-free filing.
Tax experts also highlighted the strain caused by frequent utility updates, e-filing portal issues, and complex reconciliation processes involving GST, TDS, and other statutory reports. The extension aims to smooth these challenges and allow accurate compliance without penalties.
Who Benefits from the New Deadline
The extension primarily applies to taxpayers whose accounts must be audited under the Income-tax Act, 1961 — Clause (a) of Explanation 2 to Section 139(1).
That includes:
- Businesses with turnover exceeding the prescribed limits under Section 44AB.
- Professionals such as doctors, lawyers, and consultants whose gross receipts exceed ₹50 lakh.
- Entities covered under presumptive taxation opting out in the current year.
However, those covered by transfer-pricing provisions (Form 3CEB) may still need to adhere to the November 30, 2025, deadline unless the CBDT provides further clarification.
Key Compliance Dates for FY 2024-25 (AY 2025-26)
| Compliance Type | Earlier Due Date | Extended Due Date |
|---|---|---|
| Tax Audit Report Filing | 30 Sept 2025 | 10 Nov 2025 |
| ITR Filing for Audit Cases | 31 Oct 2025 | 10 Dec 2025 |
| Transfer-Pricing ITR (Form 3CEB)** | 30 Nov 2025 | To be confirmed |
Penalty Risks Still Apply
While the extension provides breathing room, taxpayers must remember that failure to file on time after the new due date could still invite penalties.
Under Section 271B, a penalty of 0.5% of turnover or ₹1.5 lakh (whichever is lower) may apply for failure to file an audit report on time. Similarly, late ITR filings may attract additional interest and limit loss-carry-forward benefits.
Hence, experts advise against waiting until the final day, as last-minute rushes often lead to technical issues or filing errors.
Experts Welcome the Move
Financial professionals have welcomed mainly the CBDT’s decision. According to industry experts, the revised timeline is a “fair and balanced” approach that recognizes the ground realities faced by small and mid-sized audit firms.
They note that the additional month helps auditors complete verification procedures, adjust balance sheets, and ensure full compliance with GST and TDS reporting, thereby improving the overall accuracy of filings.
What Taxpayers Should Do Next
If you’re among those required to file audited returns, here’s what to prioritize before December 10:
- Finalize Books of Accounts — Ensure all entries, invoices, and TDS reconciliations are complete.
- Obtain Audit Report Early — Don’t wait until the deadline; aim for early November completion.
- Cross-check All Disclosures — Match financial statements with audit notes and tax computations.
- Verify Portal Credentials — Update your e-filing details, authorized signatory, and DSC before submission.
- Keep a Backup of All Files — Maintain offline copies in case of system downtime or audit verification.
Final Thoughts
The CBDT’s decision to extend the ITR filing due date for audit cases to December 10, 2025, is a positive step that reduces compliance stress and upholds the integrity of the filing system.
Taxpayers now have sufficient time to complete audits and file returns carefully, ensuring smoother compliance and reduced risk of penalties. However, the relief should not translate into complacency — timely preparation and submission remain the key to stress-free filing.
For official updates, visit the Central Board of Direct Taxes (CBDT) press release page.
