New Delhi: The Central Board of Direct Taxes (CBDT) has announced that the deadline for furnishing Tax Audit Reports (TARs) under the Income-tax Act, 1961, for the Previous Year 2024-25 (Assessment Year 2025-26) has been extended from 30th September 2025 to 31st October 2025. This extension applies specifically to assessees referred to in clause (a) of Explanation 2 to sub-section (1) of section 139 of the Act.
The decision follows representations received from various professional associations, including Chartered Accountants, highlighting difficulties faced by taxpayers and practitioners in completing audit reports on time. The submissions cited disruptions caused by floods and other natural calamities in certain parts of India, which have affected normal business and professional activities. The matter has also been brought before High Courts.
CBDT clarified that the Income-tax e-filing portal has been functioning smoothly, with no technical issues reported. As of 24th September 2025, over 4,02,000 Tax Audit Reports had been uploaded, including more than 60,000 reports submitted on 24th September alone. Additionally, over 7.57 crore Income Tax Returns (ITRs) have been filed till 23rd September 2025.
Despite the stability of the e-filing system, the CBDT acknowledged the challenges faced by tax practitioners and, considering their representations before the courts, extended the ‘specified date’ for submission by a full month. A formal notification regarding this extension is expected to be issued shortly.
The extension provides additional time for taxpayers and auditors to ensure accurate and complete reporting, reducing the risk of penalties for late submissions. Tax experts advise professionals to continue utilizing the e-filing portal to submit reports and ITRs promptly to avoid last-minute congestion.
Impact:
- Assessees under clause (a) of Explanation 2 to sub-section (1) of section 139 now have until 31st October 2025 to file their Tax Audit Reports.
- Professional bodies and practitioners can manage disruptions caused by natural calamities without penalty.
- The extension reinforces CBDT’s flexible approach to compliance during unforeseen events.