An income tax audit (or tax audit) is a statutory requirement under Section 44AB of the Income Tax Act for certain taxpayers whose turnover or gross receipts exceed specified limits. The audit ensures that accounts, income, deductions, and books of accounts are correctly maintained and reported.
Tax practitioners—chartered accountants, tax consultants—play a key role in preparing, verifying, and filing the Tax Audit Report (TAR) and related Income Tax Return (ITR). For many, the timing and deadlines are critical for compliance and avoiding penalties.
Tax Audit Date Extension: What’s New?
In recent developments, the Rajasthan High Court (Jodhpur bench) has issued an interim order directing the Central Board of Direct Taxes (CBDT) to extend the deadline for filing the Tax Audit Report (TAR). The due date has been shifted from 30 September 2025 to 31 October 2025.
The extension is currently applicable in Rajasthan, unless CBDT issues a nationwide notification adopting it broadly. Several writ petitions in other states are also pressing for a similar extension.
Legal Action & Petitions
- The Bhilwara Tax Bar Association filed a writ petition in Rajasthan High Court seeking the extension of the tax audit report deadline.
- The Tax Bar Association, Jodhpur has also filed a PIL, citing technical glitches and delays as key grounds.
- The Rajasthan Tax Consultants Association (RTCA) submitted a PIL urging the court to extend deadlines, given the limited working days and portal issues.
- Other professional bodies like AIFTP and BCAS have urged CBDT to extend deadlines for audit and ITR filings across India.
Tax Audit Report & Its Deadline
The Tax Audit Report (TAR) must document the results of the audit under Section 44AB. It includes Form 3CB / 3CD or 3CA / 3CD depending on the nature of the taxpayer.
The deadline for filing TAR for AY 2025-26 was set as 30 September 2025. If the High Court order is adopted, the extended deadline is 31 October 2025.
Which ITR Forms Go With TAR?
For taxpayers required to undergo audit, the relevant ITR forms include:
- ITR-3: For individuals / HUFs / professionals with audited accounts.
- ITR-5: For firms, LLPs, AOPs, BOIs (except those filing ITR-7).
- ITR-6: For companies other than those claiming exemption under section 11. (If audit is required.)
Impact on Tax Practitioners & Stakeholders
Tax practitioners face significant workload and compliance stress during audit season. Short deadlines, portal errors, and compressed timelines add to pressure. Many associations have argued that an extension is needed to maintain accuracy and avoid errors.
If the extension becomes broadly applicable, it will provide relief to taxpayers and professionals, giving them breathing room to finalize audits and reports properly.
Disclaimer
This article is based on publicly available reports and legal notices as of September 2025. The interim extension applies in Rajasthan under High Court order. Whether the extension becomes a nationwide rule depends on CBDT’s action or further judicial decisions. Please consult a qualified tax professional or legal advisor for advice tailored to your case.
FAQs
Q: What is the tax audit due date extension latest news?
A: The Rajasthan High Court has ordered the extension of the tax audit report deadline from 30 September to 31 October 2025. Whether CBDT will apply it nationwide remains to be seen.
Q: Who must file a tax audit report and using which ITR forms?
A: Tax audits are required under Section 44AB for taxpayers exceeding turnover thresholds (e.g. ₹1 crore or ₹50 lakh for professionals). The corresponding ITR forms are ITR-3, ITR-5, or ITR-6 depending on type of entity.
Q: What is the role of Rajasthan High Court in the extension?
A: The Rajasthan High Court has issued an interim direction to CBDT to extend the tax audit report filing deadline by one month (to 31 October 2025) in response to petitions citing technical and procedural challenges.
