Don't miss out on two major September 30 deadlines: UPS switch and income tax audit

As the September 30, 2025, deadline nears, both businesses and central government employees face two significant compliance obligations: the income tax audit filing for FY 2024–25 and the one-time switch to the Unified Pension System (UPS). While the official tax audit deadline remains September 30, recent court orders in Rajasthan and Karnataka have provided an extension to October 31, 2025.

UPS switch for Central Government Employees

There’s a common misconception that only the National Pension System (NPS) is market-linked and capable of generating higher returns. In reality, this is not entirely accurate. The Unified Pension System (UPS) is also market-linked and provides the same range of investment options available under NPS.

What sets UPS apart is its guaranteed minimum pension feature. Under UPS, subscribers are assured a monthly pension equal to 50% of the average basic salary drawn in the last 12 months of service.

On the other hand, NPS provides greater flexibility, with a choice of pension fund managers, investment schemes, partial withdrawal options, and various annuity plans. However, it does not offer a guaranteed pension.

Businesses must undergo a tax audit if their annual turnover exceeds ₹1 crore.

However, if cash transactions constitute less than 5% of total business transactions, the threshold increases to ₹10 crore.

Professionals are required to get audited if their gross receipts exceed ₹50 lakh in a financial year.

Additional cases may also trigger audit requirements, depending on the nature of income or business activities.

Will the income tax audit deadline be extended?

Several organisations, including the Bhilwara Tax Bar Association, chambers of commerce, and ICAI, have formally urged the Finance Ministry to extend the deadline.

In response to industry concerns, the Karnataka State Chartered Accountants Association (KSCAA) filed a writ petition seeking an extension of the tax audit deadline. The Karnataka High Court has directed the Central Board of Direct Taxes (CBDT) to consider a one-month extension.

Additionally, the Rajasthan High Court, in a recent directive, has asked the CBDT to extend the tax audit filing deadline to October 31, 2025.