Every year, thousands of taxpayers scramble at the last minute to complete their Tax Audit under Section 44AB of the Income Tax Act, 1961. Missing the deadline doesn't just create compliance pressure-it can attract penalties, interest, and even trigger assessments.
If you are a partner, firm, company, or any assessee covered under tax audit look out for Dead line.
For the financial year 2024-25 (Assessment Year 2025-26), the extended deadline to submit the tax audit report for most assessees is November 10, 2025. The associated Income Tax Return (ITR) filing deadline for these cases is December 10, 2025.
Who is Subject to a Tax Audit?
Section 44AB of the Income Tax Act requires a tax audit for various entities, including businesses and professionals, based on turnover or gross receipts. Businesses generally need an audit if sales exceed ₹1 crore, with an extended limit of ₹10 crore if cash transactions are limited to 5%. Professionals require an audit if gross receipts exceed ₹50 lakh.
Reasons for Extension
The department cited delays in e-filing utilities and technical readiness as one of the reasons; forms and audit return utilities were made available late, affecting ability to meet original deadlines.
Multiple High Courts had also heard petitions from taxpayers/CA bodies seeking extension - and some had issued interim directions.
To accommodate the extra time needed for audits and for accurate compliance, CBDT used its powers under Section 119 of the Income‑tax Act, 1961 to grant the extension.
Updated Deadlines (FY 2024-25 / AY 2025-26) - As per Latest Notification (Circular No.15/2025)
| Type of Filing / Report | Original Deadline | Revised Deadline (as per 2025 extension) |
| Tax-Audit Report (Section 44AB etc.) | 30 Sept 2025 | 10 November 2025 |
| ITR Filing - for audit-required assessees / companies / firms etc. | 31 October 2025 | 10 December 2025 |
Consequences of Non filing of IT Return on or before the Due Date
Penalty for Late Filing of ITR (Sec. 234F)
- ₹5,000 late filing fee if total income > ₹5 lakh
- ₹1,000 late filing fee if total income ≤ ₹5 lakh
This fee is mandatory-even if the ITR is filed one day late.
Interest for Late Filing or Payment (Sec. 234A/234B/234C)
Sec 234A - Interest for Late Filing
If tax is unpaid: 1% per month from due date until filing.
Sec 234B - Advance Tax Shortfall
If advance tax paid < 90% of total tax liability → 1% per month.
Sec 234C - Delay in Advance Tax Installments
Interest for deferment of each installment.These interests are over and above late fees.
Loss of Right to Carry Forward Losses
If ITR is not filed by the due date, the assessee cannot carry forward:
- Business loss
- Speculation loss
- Capital loss
- Loss from owning racehorses
Only house property loss set-off is allowed, but carry-forward is disallowed.
This can lead to significant tax burden in future years.
Higher Risk of Scrutiny & Notices
Non-filing or late filing increases your compliance risk score.
You may receive:
- Notice under 139(9) - Defective return
- Notice under 142(1) - Inquiry before assessment
- Notice under 143(2) - Scrutiny assessment
- Notice under 148 - Income escapement
- AIS/TIS mismatch notices
Frequent non-filing increases the chance of detailed audit.
Ineligibility for Loans, Visas, Tenders & Registrations
Banks and authorities require timely ITRs for:
- Home loans
- Business loans
- Startup registrations
- MSME limits
- Visa processing
Non-filing directly harms financial credibility.
Key Takeaways
Tax Audit Due Date Extended
Tax Audit Report (Form 3CA/3CB & 3CD) must be filed on or before 10th November 2025 as per the latest CBDT notification.
ITR Deadline Extended
Assessees requiring tax audit must file their ITR by 10th December 2025.
Non-Filing of Tax Audit Report Attracts Heavy Penalty
Penalty under Section 271B is 0.5% of turnover/gross receipts, capped at ₹1,50,000.
Late Filing of ITR Leads to Mandatory Fee
Under Section 234F, late filers must pay ₹5,000 (if income > ₹5 lakhs) or ₹1,000 (if income ≤ ₹5 lakhs).
Interest is Charged on Unpaid Tax
Interest @ 1% per month under Section 234A/B/C applies for delays and advance tax shortfalls.
Loss Carry-Forward Benefits Are Lost
Business loss, capital loss & speculation loss cannot be carried forward if return is not filed on time.
Refund Delays Increase Financial Burden
Refund processing slows down, and the taxpayer may lose interest on delayed refunds.
Higher Risk of Scrutiny
Late or non-filing increases the likelihood of receiving notices under Sections 139(9), 142(1), 143(2), 148, etc.
Prosecution Possible for Willful Non-Filing
In extreme cases, imprisonment from 3 months to 7 years may be imposed.
Compliance Status Affects Loans & Visa Applications
Banks, NBFCs, and embassies require timely ITRs; non-compliance reduces credibility.
FAQs
What is the new ITR filing deadline for taxpayers requiring audit?
The extended ITR filing deadline is 10th December 2025.
Can I carry forward my losses if I file after the due date?
No. Most losses like business loss, capital loss, and speculation loss cannot be carried forward if you file late.
What if I don't have taxable income - do I still face penalties?
If your income is below the basic exemption but you are mandated to file due to audit, then penalties can still apply. If no audit applies and income is below exemption, penalty generally does not apply.
Can I revise my return if I file after the due date?
No. Only returns filed on or before the due date can be revised.Belated returns cannot be revised unless the law provides exceptions.
CAclubindia
