Filing income tax returns is an important responsibility for every taxpayer in India. Among the various compliance requirements, Tax Audit under Section 44AB of the Income Tax Act plays a vital role for businesses and professionals. If your turnover or gross receipts cross the prescribed limit, you are required to get your accounts audited by a Chartered Accountant (CA) and submit the Tax Audit Report within the due date.
What is a Tax Audit?
A tax audit is an examination of the books of accounts of a taxpayer to ensure correctness of income declared and deductions claimed. It also helps the Income Tax Department verify compliance with various provisions of the law. The audit must be carried out by a Chartered Accountant who issues a report in the prescribed formats:
Applicability of Tax Audit
Businesses – If the total sales, turnover, or gross receipts exceed ₹1 crore in a financial year. (The limit increases to ₹10 crore if cash transactions are below 5% of total receipts and payments)
Professionals – If gross receipts exceed ₹50 lakh in a financial year
Presumptive Taxation Cases – If taxpayers under presumptive schemes (Sections 44AD, 44ADA, 44AE, etc.) declare income lower than the prescribed rate and their total income exceeds the basic exemption limit
Due Filing Tax Audit Report AY 2025-26
Initially, the due date for filing the Tax Audit Report for FY 2024-25 (AY 2025-26) was 30th September 2025.
However, the CBDT has extended the deadline to 31st October 2025 to provide relief to taxpayers and professionals
This means that all eligible taxpayers must ensure their tax audit report is filed by 31 October 2025.
DIGI MERCH STORE PRINT ON DEMAND
Penalty for Delay in Filing Tax Audit Report
A penalty under Section 271B may be levied.
The penalty is 0.5% of turnover/gross receipts, subject to a maximum of ₹1,50,000
Key Takeaways
Original Due Date: 30th September 2025
Extended Due Date: 31st October 2025
Applies to: Businesses, professionals, and presumptive taxpayers crossing the prescribed limits
Penalty for Delay: Up to ₹1.5 lakh
Final Thoughts
The extension of the Income Tax Audit Report due date to 31 October 2025 provides valuable extra time for taxpayers and professionals to complete their audit compliance without facing penalties. It is advisable not to wait until the last moment and ensure timely filing of the report. Proper compliance not only helps in avoiding penalties but also in maintaining transparent financial records
taxauditreportlastdate. dailyprompt-2124
incometaxauditpenalty. Affiliatemarketing
form3CA3CB3CDduedate. SmartHome
taxauditreportapplicability. OutdoorGear
CBDTtaxauditdeadlineextension. TechTips
Comment
