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Tax Audit Date Extension Plays Out in Courts Here’s What Taxpayers Should Do

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With the September 30 deadline for filing Tax Audit Reports (TAR) fast approaching, taxpayers and professionals across India are dealing with overlapping compliance timelines and technical glitches. While some high courts have extended the deadline, the Central Board of Direct Taxes (CBDT) has yet to issue any nationwide clarification.

High Court Orders on Tax Filing Date Extend

On September 24, the Rajasthan High Court’s Jodhpur Bench issued an interim order extending the TAR deadline to October 31, 2025, following a plea by the Tax Bar Association of Jodhpur. Similarly, the Karnataka High Court granted an extension until October 31, based on a petition by the Karnataka State Chartered Accountants Association (KSCAA).

Meanwhile, additional petitions have been filed. The All India Federation of Tax Practitioners (AIFTP) has approached the Delhi High Court requesting an extension of both the TAR deadline to October 31 and the ITR filing deadline in audit cases to November 30. A similar plea has been filed before the Madhya Pradesh High Court.

In a letter to the CBDT, the Institute of Chartered Accountants of India (ICAI) highlighted ongoing issues with the filing of tax returns, tax audit reports, and submission of Form 10AB for renewal of trust registrations, which are due by September 30 in cases where registrations fall due on April 1, 2026.

Tax bodies like the Chartered Accountants Association in Jalandhar have also called for an extension.

Implications for Taxpayers

It is important to note that the high court extensions currently apply only to Rajasthan and Karnataka. Taxpayers in other states should consult tax professionals like StartupFlora and stay updated via official CBDT notifications.

Who Needs a Tax Audit?

Under Section 44AB of the Income Tax Act:

  • Businesses with turnover above ₹1 crore must undergo a tax audit.
  • This threshold rises to ₹10 crore if 95% or more transactions are digital.
  • Professionals (doctors, lawyers, architects, chartered accountants) with income over ₹50 lakh also require audits.
  • Those under presumptive taxation (e.g., Section 44ADA) must audit if profits declared are below the prescribed rate.

Need Help with Tax Filing?

If you’re looking for Tax Filing Consultants, you can visit StartupFlora. They also offer additional Tax Related Services including:

Whether you're an entrepreneur, professional, or MSME, timely guidance can make a significant difference in managing tax compliance efficiently.

Frequently Asked Questions (FAQ)

Q1. Is the tax audit deadline extended nationwide?
A: No, currently the extension to October 31, 2025, applies only to Rajasthan and Karnataka, as per respective High Court orders. Taxpayers in other states must still adhere to the September 30 deadline unless CBDT issues a broader notification.

Q2. What should taxpayers outside these states do?
A: They should file their Tax Audit Reports by September 30, 2025, or consult a tax professional immediately for state-specific legal updates and risk assessments.

Q3. Will the CBDT likely extend the deadline?
A: Several tax bodies and ICAI have requested extensions, but CBDT has not issued any official update as of now. Keep checking the Income Tax India website or consult with a tax expert.

Q4. Who is required to undergo a tax audit under Section 44AB?
A: Businesses with turnover over ₹1 crore (or ₹10 crore for digital transactions), and professionals with income above ₹50 lakh. Also, those under presumptive taxation declaring lower-than-expected profits.

Q5. Can freelancers or consultants be subject to tax audits?
A: Yes, if their annual professional income exceeds ₹50 lakh or if they opt for presumptive taxation but declare profits below the specified rate.

Q6. What is Form 10AB and who needs to file it?
A: Form 10AB is used for renewing the registration of trusts and charitable institutions. It must be submitted by September 30, 2025, in cases where registration falls due on April 1, 2026.