The Central Board of Direct Taxes (CBDT) has extended the “specified date” for furnishing various audit reports (including the tax audit report) for the previous year 2024-25 (i.e., Assessment Year 2025-26) from 30 September 2025 to 31 October 2025
This extension applies to assessees covered under clause (a) of Explanation 2 to sub-section (1) of section 139 of the Income Tax Act, 1961 (i.e. those required to get accounts audited under any provision of the Act or any other law)
The Central Board of Direct Taxes (CBDT) has officially extended the due date for filing Tax Audit Reports (TARs) for Assessment Year 2025-26.
- Earlier Due Date: 30th September 2025
- New Due Date: 31st October 2025
This extension has been notified through CBDT Circular No. 14/2025 dated 25.09.2025 and Notification No. 149/2025 [F. No. 300196/37/2025-ITA-I] dated 22.09.2025, which clearly specify that the “specified date” under Explanation 2 to Section 139(1) of the Income-tax Act, 1961, has been extended to 31 October 2025.
Why this extension matters
- Legal obligation / compliance pressure
Under section 139(1) read with Explanation 2, certain taxpayers must submit audit reports by specified dates. Missing this deadline can make the ITR filing defective or expose the taxpayer to penalties. This extension thus reduces compliance pressure. - Relief to taxpayers & professionals
The additional month gives breathing space to businesses, professionals and auditors, especially given the tight timelines, festival season, and multiplicity of compliance tasks. Many audit & tax professionals had complained that the original schedule was too tight. - Judicial push
High Courts in Rajasthan and Karnataka had intervened and issued interim orders extending the audit deadline to October 31 in their jurisdictions, influencing the decision - Operational constraints acknowledged
The CBDT, while noting that the e-filing portal was functioning stably, considered representations about practical difficulties — including disruptions from natural calamities in some regions — before granting the extension
What to watch out for / implications & limits
- Applicability: The extension covers those assessees already required to file audit reports (i.e., under clause (a) of Explanation 2, section 139). It may not affect cases outside that scope.
- ITR filing alignment: Even if the audit report deadline is extended, the ITR (return of income) deadlines may have separate rules. The audit report normally must be furnished along with or before the return for those who require audit.
- Penalty / late fees: The extension does not necessarily waive an automatic late penalty. In case a taxpayer or auditor misses even the extended date, justifications like “reasonable cause” may be required.
- High Court orders limited to jurisdictions: The interim orders by Rajasthan & Karnataka HCs were technically applicable only in their judicial territories, till appeal or CBDT notification overrides.
- Formal notification vs press reports: While media reports unanimously state the extension, it is prudent for taxpayers and practitioners to check the official CBDT/Income Tax Department notification or circular (Circular 14/2025) before acting.
- Other audit reports too: Some write-ups suggest that not just the “tax audit” but various audit reports under any provision of the Act are covered.