Below is the detailed breakdown of who is required to conduct a tax audit, the consequences for missing the deadline, how preparing in advance can facilitate avoiding penalties, etc.
Saloni Kumari | Aug 4, 2025 |
Tax Audit Deadline for FY 2024-25: Key Dates, Applicability, and Compliance Guide
Among the income tax calendar 2025 due dates, the tax audit deadline is one of the most important dates for businesses, professionals, and partnership companies. According to the updates, the deadline for submitting tax audit reports and filing ITR for audit cases for the financial year 2024-25 is September 30, 2025, and October 31, 2025, respectively.
Below is the detailed breakdown of who is required to conduct a tax audit, the consequences for missing the deadline, how preparing in advance can facilitate avoiding penalties, etc.
A tax audit is a formal examination of an individual’s or organisation’s tax return by a Chartered Accountant (CA) to verify that tax laws have been properly followed. The purpose behind performing this examination is to ensure that the taxpayer has accurately reported his/her income, deductions, and credits.
Few categories of taxpayers are required to get their accounts audited. This category of taxpayers is notified in Section 44AB of the Income Tax Act.
There are mainly three types of tax audits conducted. These are as follows:
According to the official updates, the deadline for conducting tax audits is September 30, 2025, and filing ITR for audit cases is October 31, 2025.
It is important to submit the tax audit report to the income tax department timely manner. You cannot file an Income Tax Return (ITR) until your report is submitted and accepted by the Income Tax Department.
Some taxpayers are required to complete a tax audit before the due date on the basis of their turnover, professional receipts, and taxation method. These types of taxpayers are listed in Section 44AB of the Income Tax Act, 1961. It is important to know who falls under this category to avoid penalties and ensure compliance. Mainly, two categories fall under the tax audit requirement:
These are subject to different thresholds and rules under the Income Tax Act (especially Section 44AB in India).
1. Businesses (Under Section 44AB(a) & (e))
When is a tax audit required for businesses?
| Condition | Applicability |
| Turnover exceeds Rs. 1 crore | A tax audit is mandatory. |
| Turnover exceeds Rs. 10 crore (from AY 2021-22) | Only if 95% or more of business transactions are digital (receipts and payments). |
| Opting for Presumptive Taxation (44AD) | No audit if turnover is ≤ Rs. 2 crore and profit is ≥ 8% (6% for digital). |
| Declared profit < 8% (or 6%) under 44AD | Tax audit becomes mandatory, even if turnover < Rs. 2 crore if opted in 44AD earlier and now opting out. |
2. Professionals (Under Section 44AB(b))
When is a tax audit required for professionals?
| Condition | Applicability |
| Gross receipts > Rs. 50 lakh | Tax audit is mandatory. |
| Opting for presumptive scheme (44ADA) | No audit if declared profit is ≥ 50% and receipts ≤ Rs. 75 lakh. Only if 95% or more of professional reciepts are digital |
| Opting for presumptive scheme (44ADA) [Other than above] | No audit if declared profit is ≥ 50% and receipts ≤ Rs. 50 lakh. |
| Declared profit < 50% under 44ADA | Audit is required. |
Below are the forms used for filing taxes:
| Form | Purpose |
| Form 3CA | For entities already subject to audit under another law (e.g., Companies Act) |
| Form 3CB | For others (mainly individuals, firms) |
| Form 3CD | Detailed statement of accounts (Annexure to 3CA/3CB) |
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