Updated 24 September 2025 at 14:03 IST
Income Tax Audit Explained: Key Dates, Penalties, and Filing Tips
Tax professionals are asking the CBDT to extend income tax return (ITR) and audit filing deadlines for AY 2025-26. With floods, landslides, and technical glitches disrupting compliance, taxpayers, especially businesses and professionals, seek more time to file accurate returns and avoid penalties.
The All India Federation of Tax Practitioners (AIFTP) has requested the Central Board of Direct Taxes (CBDT) to extend filing deadlines for income tax returns (ITRs) and tax audit reports.
AIFTP President Samir Jani told PTI, “Taxpayers are facing multiple challenges this year, from floods and landslides to portal glitches and compliance pressures. We have submitted a memorandum asking the CBDT to provide more time so everyone can file correctly.”
Proposed New Deadlines You Should Know
AIFTP has suggested the following changes for AY 2025-26:
Non-audit cases: ITR filing extended from September 15 - October 15, 2025
Tax audit reports: Submission extended from September 30 - October 31, 2025
Audit cases: ITR filing extended from October 31 - November 30, 2025
Currently, taxpayers with audit accounts, companies, proprietorships, and partners, must submit their audit reports by September 30 before filing ITRs by October 31. CBDT has not confirmed any extensions yet.
Do You Need a Tax Audit?
You may need a tax audit if:
Your business turnover exceeds Rs 1 crore (or Rs 10 crore if cash transactions are below 5% of total)
Your professional gross receipts exceed Rs 50 lakh annually
Other special circumstances apply
A tax audit is essentially a financial check to ensure your income, expenses, and deductions are reported correctly, and your taxes are accurate.
Penalties You Could Avoid
Missing a tax audit deadline can trigger penalties under Section 271B:
0.5% of turnover/gross receipts, capped at Rs 1,50,000
No penalty if you can prove reasonable cause for the delay
This makes extensions crucial for taxpayers who want to avoid fines and errors in their filings.
Why You Should Care
This year, many taxpayers are struggling with natural disasters, technical issues, and tight deadlines. Extending deadlines could mean:
More time to prepare accurate returns
Reduced stress for small businesses and professionals
Lower risk of penalties and errors
According to AIFTP, “Extensions are not about delaying compliance—they are about ensuring taxpayers can file correctly and avoid mistakes that cost time and money.”
As the deadline approaches, taxpayers are watching closely to see if CBDT will act on these recommendations.
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Published By : Gunjan Rajput
Published On: 24 September 2025 at 14:02 IST