Tax Audit Report Deadline 2025: September 30 Looms for Businesses, But Rajasthan HC Order Offers Glimmer of Hope

With the September 30, 2025, deadline for filing tax audit reports just days away, taxpayers across India are in a race against the clock. While the Central Board of Direct Taxes (CBDT) has yet to announce a nationwide extension, an interim order from the Rajasthan High Court has directed the government to extend the due date to October 31, 2025, providing a significant boost to professionals and businesses grappling with portal glitches and compliance challenges.

The Current State of Play

The deadline for filing the audit report (Form 3CD, among others) for the financial year 2024-25 is a critical compliance date for a wide range of taxpayers, including companies, proprietorships, and partnerships whose accounts are subject to audit. This report is a prerequisite for filing their Income Tax Return (ITR), for which the due date is October 31, 2025.

Tax authorities have been firm on the deadlines, with no official extension announced for the country as a whole. This has put immense pressure on taxpayers and tax professionals, especially after the due date for non-audit cases was recently extended to September 16.

Court Intervention Provides Relief

In a major development, the Rajasthan High Court, responding to a petition filed by local tax bar associations, issued an interim order on Wednesday, September 24, 2025, directing the CBDT to extend the tax audit report deadline to October 31, 2025.

This court order, while legally binding only within the state of Rajasthan for now, sets a strong precedent and could compel the tax department to consider a uniform, nationwide extension. The petition cited several ongoing challenges, including persistent technical glitches on the income tax e-filing portal, delays in the release of new utility forms, and a congested compliance calendar, as reasons for the requested extension.

Why the Deadline Matters

Missing the September 30 deadline can lead to significant penalties under Section 271B of the Income Tax Act, which imposes a penalty of 0.5% of total sales or turnover, capped at ₹1,50,000. Beyond the financial penalty, a delay can also affect the ability to carry forward certain losses, making timely compliance crucial.

Professional bodies, including the Institute of Chartered Accountants of India (ICAI), have been actively lobbying the government for an extension, highlighting that the delayed release of key forms has made it nearly impossible for many to complete their audits in time.

What Taxpayers Should Do Now

As of today, the official national deadline remains September 30, 2025. While the Rajasthan High Court’s order is a positive sign, taxpayers outside of the state should continue to work towards the existing deadline to avoid penalties. Tax experts advise businesses and professionals to file their audit reports as soon as possible, as the government has not made a concrete announcement for a pan-India extension.

The coming days will be crucial, as the tax community waits to see if the CBDT will act on the court’s directive and provide much-needed relief to taxpayers across the country.

Disclaimer: This article is for informational purposes only and is based on current income tax regulations, public announcements, and a recent court order. It does not constitute legal or professional tax advice. Taxpayers are strongly advised to consult a qualified tax professional or refer to the official website of the Income Tax Department for personalized guidance and the latest updates.

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