In a major relief to taxpayers across the country, the Income Tax Department has announced an extension for filing Income Tax Returns (ITRs) and audit reports. The new deadline has now been pushed to December 10, 2025, as per the latest notification issued by the Central Board of Direct Taxes (CBDT). The decision comes following directions from various High Courts and appeals from taxpayers and professionals who were struggling to meet the earlier deadlines.
ITR Filing Date Extended
The Income Tax Department shared the update on social media platform X (formerly Twitter), confirming that the due date for filing returns under Section 139(1) for the Assessment Year 2025–26, which was earlier October 31, 2025, has now been extended to December 10, 2025.
This extension means that taxpayers can now file their returns without paying any penalty until the new deadline. The announcement is expected to provide significant relief to businesses, professionals, and individuals facing challenges due to audit and compliance delays.
Earlier Deadlines
Initially, the last date for submitting tax audit reports was September 30, 2025. It was later extended to October 31, 2025, after several representations from chartered accountants and tax associations. Now, the government has given additional time till December 10, 2025, offering much-needed flexibility for taxpayers.
Who Needs a Tax Audit?
A tax audit is mandatory for:
- Businesses with an annual turnover exceeding Rs. 1 crore (can go up to Rs.10 crore if cash transactions are below 5%).
- Professionals such as doctors, lawyers, and consultants with annual gross receipts above Rs. 50 lakh.
Failing to submit an audit report on time may attract penalties under Section 271B of the Income Tax Act. The penalty can be 0.5% of total sales, subject to a maximum of Rs.1.5 lakh. However, if a taxpayer can justify the delay — for instance, due to technical issues or unforeseen circumstances — the department may consider waiving the penalty.
Reason Behind the Extension
The CBDT extended the deadline in response to directions from the Gujarat High Court, Punjab and Haryana High Court, and Himachal Pradesh High Court, which emphasized the need for at least a one-month gap between the tax audit report submission date and the ITR filing date. The move aims to ensure smooth compliance and reduce unnecessary stress on taxpayers and professionals during the busy audit season.
