Income tax audit report filing AY 25-26: Why Indians are demanding deadline extension

This comes days after the deadline to file income tax returns (ITR) expired on September 16, despite online backlash

itrfilingdeadline - 1 Representative image | Shutterstock

With the deadline to file income tax audit reports for AY 25-26 fast approaching on September 30, calls to extend the last date have grown louder, owing to e-portal issues.

This comes days after the deadline to file Income Tax Returns (ITR) expired on September 16, despite online backlash for similar reasons.

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In that regard, the Rajasthan High Court has directed the Central Board of Direct Taxes (CBDT) to extend the deadline for audit report filing by one month: from September 30 to October 31.

Tax audit reports are done for companies with total sales, turnover, or gross receipts exceeding Rs 1 crore in a particular fiscal year, as per Section 44AB of the Income Tax Act. For working professionals, the threshold is Rs 50 lakhs, unless 95 per cent of their receipts are in digital form, in which case the threshold is Rs 75 lakhs.

A number of users have highlighted the stark reality of tax auditing reports filed this AY 25-26: that only 3,77,243 reports have been uploaded to the platform (based on UDINs) as of September 22, which is only 10 per cent of the tax reports filed in the previous AY 24-25.

"Rushed filings = More errors. Extension = Better compliance," another user pointed out on X.

The Institute of Chartered Accountants of India (ICAI) had also recently solicited feedback on filing issues. They received 1,200 reports—many of which contained screenshots—that highlighted various portal glitches which made it difficult for CAs to file the reports.

The ICAI has conveyed this to the CBDT, in addition to requests to extend the deadlines for filing ITRs (from September 15 to October 15), and filing ITRs in audit cases (from October 31 to November 30).

Under Section 271B of the Income Tax Act, missing the deadline to file I-T audit reports can lead to a penalty of 0.5 per cent of total sales, turnover, or gross receipts (up to Rs 1,50,000).

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