Big relief to taxpayers! Date for filing tax audit report extended, now penalty will not be imposed

The biggest relief news of the year has come for the income tax payers. The Income Tax Department has extended the last date for filing Tax Audit Report for the financial year 2024-25 from 30 September to 31 October 2025.

This decision is a big gift for lakhs of taxpayers and businessmen who were in tension as the last date was approaching. Now they have got an additional month of full time to prepare and submit their report.

Why was this deadline extended?

The Central Board of Direct Taxes (CBDT) has taken this decision for two big reasons:

1. Natural calamities: Due to floods and heavy rains in many parts of the country, people were facing huge difficulties in collecting their documents.
2. Technical problems: Apart from this, there were complaints of some technical problems on the e-filing portal of Income Tax, which was causing delay in filing.

For whom is tax audit necessary?

Not everyone needs a tax audit. According to the Income Tax Act, it is mandatory for those who:

• Whose annual business turnover is more than Rs 1 crore (in some cases this limit is Rs 10 crore).
• Professionals (like doctors, lawyers, CA) whose annual income is more than Rs 50 lakh.

This audit is conducted by a Chartered Accountant (CA), whose report is to be submitted along with the Income Tax Return (ITR).

Heavy fine is imposed on delay

If a taxpayer does not submit his audit report on time, he may face a heavy penalty under Section 271B of Income Tax.

• This fine can be up to 0.5% of the total turnover of the business or Rs 1.5 lakh (whichever is less).

Now with the extension of the date, people have got a golden opportunity to avoid this fine and legal hassles.

Final advice:
The tax department has made it clear that this is the last chance. Therefore, taxpayers are advised not to delay any longer and file their tax audit reports by October 31 to avoid any hassles.