In a significant move providing relief to taxpayers, the Central Board of Direct Taxes (CBDT) has extended the deadlines for filing audit reports and Income Tax Returns (ITR) for the Assessment Year 2025-26. The extension comes in response to multiple High Court orders and representations from professional bodies citing difficulties in meeting the original deadlines.
The due date for furnishing the Return of Income under sub-section (1) of Section 139 of the Income Tax Act, 1961, initially set for October 31, 2025, has been extended to December 10, 2025. This extension applies to assessees whose accounts require auditing, including companies, proprietorships, and working partners in firms.
Furthermore, the CBDT has extended the "specified date" for furnishing the report of audit under the provisions of the Income Tax Act, 1961, for the previous year 2024-25 to November 10, 2025. The original deadline for filing Tax Audit Reports (TAR) was September 30, 2025, which was previously extended to October 31, 2025.
The decision follows a series of High Court orders, including those from the Gujarat, Punjab & Haryana, and Himachal Pradesh High Courts, which had criticized the delay in extending the due date and emphasized the necessity of maintaining a minimum one-month gap between the tax audit report filing and the return filing deadlines. The Punjab & Haryana High Court and the Himachal Pradesh High Court had extended the ITR filing deadline for tax audit cases to November 30, 2025.
The Gujarat High Court had earlier directed the CBDT to issue a circular under Section 119 of the Act, extending the deadline to November 30, 2025, for audit cases. The recent notification from CBDT formalizes a revised timeline for audit report submission for FY 2024-25.
The CBDT's action reflects a responsive approach to the practical challenges encountered by the compliance community. It aims to provide taxpayers and professionals with sufficient time to navigate the complexities of tax filing, reduce the burden of compliance, and avoid potential penalties under Section 271B for delayed filing of audit reports.
