Courts direct CBDT to extend tax audit filing due date; check new deadline and applicable states

The Rajasthan High Court on Wednesday directed the Central Board of Direct Taxes (CBDT) to extend the due date for filing the tax audit report (TAR) to October 31, 2025.

In an interim order, the Jodhpur bench of the high court, comprising Justice Pushpendra Singh Bhati and Justice Bipin Gupta, granted a one-month extension under Section 44AB of the Income Tax Act, 1961, noting that the CBDT has also granted similar extensions in the past. 

The interim order comes in response to a writ petition filed by the Jodhpur Tax Bar Association. 

"We are pleased to inform you that the Hon’ble Rajasthan High Court has extended the due date for filing of Tax Audit Reports from 30th September to 31st October. Ably represented Sr. Adv. Vikas Balia and Adv. Prateek Gattani. TAX BAR ASSOCIATION JODHPUR v/s UOI [CW 18593/2025]," Jodhpur Tax Bar Association posted on social media platform X.

The Karnataka High Court has also directed the CBDT to extend the due date by one month. The Karnataka State Chartered Accountants Association (KSCAA) had also filed a writ petition for the extension.

Will the order be applicable in other states?

No. This order will only be applicable in Rajasthan and Karnataka, and that too only if the CBDT doesn’t file a review petition in the Supreme Court. The CBDT hasn’t made any announcement regarding this yet. 

For this case, the court has set October 27, 2025 as the date for the next hearing.

Meanwhile, many such petitions have been filed all across the country, asking for the due date to be extended. 

Who needs to file a tax audit report?

Individuals with a business turnover of ₹1 crore are required to file a tax audit. The limit is at ₹10 crore if over 95% of the transactions are digital. 

If you are a freelancer or a professional, like a doctor or a lawyer, with an annual income of over ₹50 lakh, you need to file a tax audit. 

Further, if you file under the presumptive taxation scheme (44ADA) but declare lower than the prescribed rate of profits, you will need to file a tax audit. 

If you are legally required to file a tax audit and fail to do so before the deadline, which is currently September 30, a penalty of 0.5% of the turnover or ₹1.5 lakh, whichever is lower, would be applicable. 

ICAI’s DTC asks CBDT to address concerns

The Direct Taxes Committee (DTC) of the Institute of Chartered Accountants of India (ICAI) also requested the Central Board for Direct Taxes (CBDT) to address the concerns regarding updated utilities and technical glitches on the Income Tax portal. 

As of September 23, only 3,77,243 tax audit reports have been filed, which makes up for only 10% of the total tax audit reports filed last year.