ITR and Tax Audit due date will not be extended: File Before 31st October

As the month of October comes to an end, the due date to file the tax audit report for the financial year 2024-25 also approaches. Many businesses and professionals are working hard to complete their audits on time.

The last date of filing the income tax audit report for FY 2024-25 is October 31, with almost 5 days left. Missing the deadline can attract heavy penalties, especially for companies with high turnover. Therefore, the CAs are being advised to complete the audit on time.

The original due date for filing the Income Tax audit for the FY 2024-25 was September 30, 2025. This deadline was extended to October 31 by the Central Board of Direct Taxes (CBDT) as many tax professionals and companies submitted representations to the CBDT and filed writ petitions before the High Court, citing several technical glitches on the income tax e-filing portal. This due date will not be further extended. Therefore, all taxpayers are advised to file the tax audit due date before October 31, 2025, to avoid heavy penalties.

What is a Tax Audit?

A tax audit is like an inspection of the books of accounts to ensure that the firm is complying with the provisions of the Income Tax Act. The tax audit is carried out by a practising chartered Accountant. When the tax audit is completed, a tax audit report is prepared by the auditor to verify the taxpayer’s books of account.

Turnover Limit for Tax Audit

Under Section 44AB, all businesses and professionals are mandated to get their accounts audited if their turnover exceeds a certain limit.

For Businesses, the tax audit is mandatory if the total sales, turnover or gross receipts cross the limit of Rs 1 crore in a financial year. This limit rises to Rs 10 crore if 95% of the transactions are carried out through banking or digital mode. For those who have opted for the presumptive taxation scheme under section 44AD, with turnover below Rs 2 crore, tax audit does not apply.

For Professionals, the audit is mandatory if their gross receipts are more than Rs 50 lakhs in a financial year.

Penalty for Non-Audit of Books

If you do not get your accounts audited by a chartered accountant on time, you may be penalised with a fine of 0.5% of your total turnover or gross receipts, capped at Rs 1.5 lakh. Therefore, make sure you get you file your tax audit reports filed before the due date to avoid getting a penalty of up to Rs 1.5 lakh.

Due Date for filing ITR

On September 25, 2025, the CBDT extended the due date for filing tax audit reports from September 30, 2025, to October 31, 2025. However no extension was given for ITR filing, which means that the due date to file ITR for Audit cases remained October 31, 2025.

Gujarat High Court

The Gujarat High Court in matter of Income Tax Bar Association v/s Union of India has pronounced that the Income Tax Return (ITR) due date for Finacial Year 2024-25 should be 30th November 2025, after the Central Board of Direct Taxes (CBDT) has extended due date of Tax Audit to 31st October 2025. However, there is no clarification from CBDT on this matter.

Unless due date is specifically extneded by CBDT, one has to assume that due date to file Tax Audit ITRs is also 31st October 2025.

Consequences of not filing ITR on time

Restriction on Carry Forward of Losses: If you file a belated return, you cannot carry forward and set off business and capital losses in the future financial year.

Late Fee Under Section 234A: Taxpayers will be liable to pay a late fee under Section 234A for filing a belated return. The late fee for belated return is Rs 1,000 for taxpayers having a gross total income of up to Rs 5 Lakh. The penalty is Rs 5,000 for the taxpayers having a total income above Rs 5 lakh.

Interest: If you file a belated return, then this will attract an interest of 1% per month on the outstanding tax amount under section 234A.

Delayed Refund: If you are entitled to receive a tax refund, then it might be delayed if you file your return late.