Major Relief for Taxpayers: CBDT Extends Deadline for Tax Audit Reports and ITR Filing for AY 2025-26

The Central Board of Direct Taxes (CBDT) has announced a significant extension of the deadlines for filing Income Tax Returns (ITRs) and the submission of Tax Audit Reports for the Assessment Year (AY) 2025-26, offering crucial relief to taxpayers and financial professionals across the country.

New, Updated Due Dates

In a notification issued on October 29, 2025, the CBDT confirmed the revised statutory due dates under the Income-tax Act, 1961, for the relevant class of assessees:

• Tax Audit Report Filing (Specified Date): The deadline for furnishing the Tax Audit Report for the Previous Year 2024-25 (AY 2025-26) has been further extended to November 10, 2025. This date was earlier extended from September 30, 2025, to October 31, 2025.
• Income Tax Return (ITR) Filing: The due date for filing the Income Tax Return for the Assessment Year 2025-26 for assessees whose accounts require an audit has been extended from October 31, 2025, to December 10, 2025.

Who Benefits from the Extension?

This extension primarily benefits the categories of taxpayers whose accounts are mandatorily required to be audited under the provisions of the Income-tax Act, 1961, or any other law. This typically includes:

• Companies
• Firms (Including working partners of a firm)
• Individuals and other entities whose business turnover or gross receipts exceed the prescribed statutory limits ($\S 44AB$ of the Income Tax Act).

The relief ensures that these taxpayers, who have complex compliance requirements, have sufficient time to complete their auditing procedures and submit their returns accurately.

The Rationale Behind the Extension

The decision by the CBDT comes after repeated appeals and representations from various professional bodies, including Chartered Accountant associations, and subsequent interventions by various High Courts. The main reasons cited for the demand for extension included:

• Logistical Challenges: Disruptions caused by heavy monsoon rains, floods, and other natural calamities in various parts of the country were highlighted as factors impeding normal business and professional activities, leading to delays in accounting and audit finalisation work.
• Judicial Mandate: The move also aligns with recent rulings from High Courts—including the Gujarat, Punjab & Haryana, and Himachal Pradesh High Courts—which observed that there must be a reasonable gap, often cited as one month, between the due date for submitting the audit report and the final ITR filing date.

By extending the audit report deadline to November 10 and the ITR deadline to December 10, the CBDT has ensured a 30-day window between the two critical compliance dates, providing necessary breathing room for professionals.

Compliance Note for Taxpayers

While the extensions are a welcome move, taxpayers and chartered accountants are strongly advised to utilize this additional time effectively to avoid any last-minute rush. Timely and accurate filing is crucial to prevent penalties or any adverse departmental action. It is important to note that the extended due dates are final, and a further extension is generally unlikely.

Taxpayers covered under Transfer Pricing provisions are advised to check the specific applicability of this extension to their compliance deadlines, as there have been concerns raised in the professional community regarding the wording of the CBDT’s press release on that particular category.