Important Update
| CBDT has extends due date for filing income tax audit report for FY 2024-25 from September 30, 2025 to October 31, 2025. |
Under Section 44AB of the Indian Income Tax Act, 1961, certain businesses and professionals are obligated to undergo a tax audit. This process involves a mandatory examination of their books of accounts to verify the correctness of their income tax filings. The eligibility thresholds for this audit are:
For Businesses
A turnover exceeding ₹1 crore during the financial year. This limit is raised to ₹10 crores if cash receipts and payments are within 5% of total receipts.
For Professionals
Gross receipts exceeding ₹50 lakhs in the financial year. In Budget 2023, this 50 lakh limit is increased to 75 lakh.
Purpose of Tax Audit
The core purpose of a tax audit is to verify compliance with tax laws and ensure the accurate reporting of taxable income, allowable deductions, and other required details.
Mandated by the Income Tax Department, this audit must be performed by a Chartered Accountant. The CA submits their findings electronically in prescribed forms (3CA, 3CB, and the comprehensive Form 3CD) by a strict deadline— September 30th, 2025, for the 2025-26 Assessment Year.
This system aids tax authorities in detecting errors and promoting compliance, while also offering taxpayers clarity and reducing the risk of penalties.
For the Assessment Year 2025-26, the statutory due date for submitting a tax audit report under Section 44AB is September 30, 2025. Consequently, the deadline for filing the corresponding Income Tax Return (ITR) for taxpayers requiring an audit is October 31, 2025.
Summary of Key Deadlines for AY 2025-26
- Tax Audit Report Filing: September 30, 2025
- Income Tax Return Filing (for audit cases): October 31, 2025
Please note that these deadlines are subject to change if the Central Board of Direct Taxes (CBDT) announces an official extension. As of today, September 20, 2025, no such extension has been granted, meaning the due date for the tax audit report remains September 30, 2025.
Failure to comply by this deadline may result in a penalty under Section 271B of the Income Tax Act, which is the lesser of:
- 0.5% of the total sales, turnover, or gross receipts, or
- ₹150,000.
| Compliance Type | Due Date |
| Tax Audit Report | 30th September 2025 |
| ITR (Audit Cases) | 31st October 2025 |
To avoid penalties and ensure compliance, businesses and professionals subject to audit must complete and file their reports by September 30, 2025.
FAQs
Section 44AB of the Income Tax Act, 1961 requires businesses and professionals in India to undergo a mandatory tax audit if their annual turnover exceeds ₹1 crore (or ₹10 crores with limited cash dealings) or their professional receipts exceed ₹50 lakhs in a financial year.
If a taxpayer fails to get a tax audit done or misses the deadline for filing the report, they face a penalty under Section 271B. The penalty is 0.5% of their total turnover or gross receipts, up to a maximum of ₹150,000 for the year.
Businesses that conduct over 95% of their receipts and payments digitally benefit from a higher tax audit threshold under Section 44AB. For them, the requirement triggers at a turnover of ₹10 crores instead of the standard ₹1 crore.
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