The Income Tax Department has given relief to taxpayers by extending the deadline for filing Income Tax Returns (ITR) and Tax Audit Reports for the assessment year 2025–26. The Central Board of Direct Taxes (CBDT) announced that the new deadline is now December 10, 2025.
This decision comes as a big relief for businesses, professionals, and individuals who were finding it difficult to complete their filings before the earlier due date of October 31, 2025.
CBDT Extends the ITR Deadline
On October 29, 2025, the Income Tax Department posted on social media platform X that the CBDT had extended the ITR filing deadline from October 31 to December 10, 2025.
This change applies to taxpayers who are required to file their returns under Section 139(1) and whose accounts need to be audited. The new date gives extra time to file ITRs without paying any late fees or penalties.
Earlier, the deadline for submitting tax audit reports was September 30, 2025, which was later extended to October 31 after requests from CA associations and tax professionals. Now, the due date has been extended once again to December 10, 2025, giving taxpayers more flexibility.
Who Needs to File a Tax Audit?
A tax audit is mandatory for certain categories of taxpayers. Here’s a simple breakdown:
- For businesses: If your annual turnover is above ₹1 crore, or up to ₹10 crore with less than 5% of transactions in cash, you need to get a tax audit.
- For professionals: If your total professional income is more than ₹50 lakh in a financial year, you are required to get an audit done.
If a taxpayer fails to file their audit report on time, they may face a penalty under Section 271B of the Income Tax Act. The penalty can be up to 0.5% of total sales, limited to ₹1,50,000.
However, if there is a genuine reason for the delay — such as illness, technical problems, or unavoidable circumstances — the penalty can be waived.
Why the Deadline Was Extended
The CBDT extended the deadline after multiple High Courts raised concerns about the short gap between the tax audit report due date and the ITR filing date.
High Courts in Gujarat, Punjab and Haryana, and Himachal Pradesh directed the CBDT to ensure at least a one-month gap between both deadlines so that taxpayers have enough time to complete the process.
Following these directions and after receiving feedback from tax professionals, the CBDT finally extended the date to December 10, 2025.
What This Means for Taxpayers
The extension brings great relief for taxpayers who were struggling to meet the earlier deadlines. It also allows businesses and professionals more time to review their audit reports and file accurate returns without any last-minute rush.
Now, all taxpayers who are required to undergo an audit can file their Income Tax Returns (ITRs) by December 10, 2025, without paying any penalty.
Final Words
The CBDT’s decision to extend the ITR and audit filing due date ensures smoother compliance for taxpayers and professionals. With this extra time, taxpayers should focus on checking their financial data carefully and completing their filings well before the deadline.
For the latest updates and detailed filing guidelines, visit the official Income Tax Department website — incometax.gov.in.
