September 30 Tax Audit Deadline 2025: Will CBDT Announce Extension Amid Portal Glitches and Festive Rush?

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As the September 30, 2025 tax audit deadline approaches, pressure is mounting on businesses and tax professionals across India. Multiple chambers of commerce, tax associations, and professional bodies have urged the Central Board of Direct Taxes (CBDT) to extend the due date, citing portal glitches, delayed release of audit forms, overlapping compliance requirements, and fewer effective working days due to the festival season.

Growing Demand for Extension

Tax professionals have taken to social media platform X (formerly Twitter) to raise their concerns and build public support for a deadline extension. Organizations like the Bhilwara Tax Bar Association, various chambers of commerce, and the Institute of Chartered Accountants of India (ICAI) have all appealed to the Finance Ministry.

The ICAI officially requested a two-month extension on September 19, while the Nagpur Chamber of Commerce, in a representation dated September 17, asked CBDT to extend the deadline for filing audit reports and related ITRs till November 30, 2025. Meanwhile, the Bombay Chartered Accountants’ Society (BCAS) also highlighted the challenges faced by taxpayers and proposed relief measures.

Why Professionals Want More Time

Several reasons have been cited by professionals and industry bodies for seeking extra time. These include:

• Heavy Compliance Burden: CA Siddharth Maurya, Founder & MD of Vibhavangal Anukulakara Pvt. Ltd., pointed out that fewer than 10% of audits have been completed so far this year. Additional disclosures, reconciliations, and duplication with other statutory filings are overburdening corporates as well as professionals.

• Risk of Errors and Penalties: Rushing through audits may lead to mistakes, which could invite penalties under the Income Tax Act. Professionals stress that quality should not be compromised due to tight timelines.

• Portal Glitches: Users continue to face technical issues on the e-filing portal, including upload failures, validation errors, schema mismatches, and slow response times, especially during peak hours.

• Delayed Release of Forms: Audit-related forms such as ITR-5, ITR-6, and ITR-7 were released very late this year. For example, ITR-5 for partnership firms, LLPs, and trusts was issued only on August 8, 2025, leaving professionals with little time to prepare. Earlier forms like ITR-2 and ITR-3 also underwent revisions in July and August, forcing rework.

• Multiple Deadlines: Between July and October, taxpayers are juggling GST filings, MCA compliance, ICAI’s revised formats, ITRs, and audit reports under Section 44AB. The overlapping deadlines have significantly increased workload.

• Festive Season: Navratri, Diwali, and other festivals fall during this period, reducing the number of effective working days for both businesses and government departments.

Current Deadlines as Per Law

As per Section 44AB of the Income Tax Act, 1961, taxpayers crossing the prescribed limits of turnover, sales, or gross receipts must get their accounts audited and file a Tax Audit Report.

• Tax Audit Report: The deadline for the financial year 2024–25 (assessment year 2025–26) is September 30, 2025.
• Income Tax Return (ITR): For cases requiring audit, the ITR must be filed by October 31, 2025.

Failure to file a tax audit report by the due date can attract penalties under Section 271B of the Income Tax Act, amounting to 0.5% of total sales, turnover, or gross receipts, subject to a maximum penalty of ₹1,50,000.

ICAI’s Strong Appeal

ICAI has been one of the most vocal bodies pushing for an extension. Its Central India Regional Council even suggested extending the audit deadline till December 31, 2025. The institute argued that the compliance burden, combined with frequent portal issues and overlapping deadlines, is placing unreasonable strain on professionals.

ICAI also emphasized that extending the due date would allow both corporates and auditors to maintain accuracy while avoiding unnecessary disputes or penalties in the future.

Will CBDT Provide Relief?

Despite repeated representations from ICAI, BCAS, and chambers like Nagpur, the CBDT has not yet announced any official extension. As per the tax calendar on the Income Tax Department’s website, the deadlines remain September 30, 2025 for audit reports and October 31, 2025 for ITR filings in audit cases.

Also Read: Don’t miss the Income Tax Return Due Date 2025

Stakeholders are now waiting anxiously, hoping the Finance Ministry acknowledges the genuine difficulties faced by taxpayers and professionals. Many believe that a pragmatic extension would provide the much-needed breathing space during this hectic compliance season.

The Road Ahead for Taxpayers

With less than a week left for the September 30 deadline, businesses and professionals face a race against time. While compliance remains critical, the volume of work, portal disruptions, and late release of utilities have made timely completion difficult for many.

If no extension is announced, taxpayers may need to put in extra effort to avoid penalties. On the other hand, if CBDT responds positively, it could ease the burden and help ensure greater compliance accuracy across the system.

Rising Pressure for a Deadline Extension

The call for extending the September 30 tax audit deadline is stronger than ever in 2025. From ICAI to regional chambers, professionals across the country are united in their appeal for more time. Whether the CBDT will take a lenient view remains uncertain, but the demand reflects a broader issue balancing compliance efficiency with practical ground realities.

Until an official decision is made, the tax community continues to push for an extension that could bring relief not just to auditors but to businesses across India.

FAQs on September 30 Tax Audit Deadline 2025 Extension

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