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ARTICLE AD BOX
Tax audit deadline 2025: September 30, 2025, remains the cut-off day for eligible taxpayers, including circumstantial individuals, to record their income taxation audit reports. For clarity, taxation audits tin lone beryllium conducted by a chartered accountant utilising income taxation forms 3CA, 3CD, and 3CB.
Taxpayers indispensable taxable their Income Tax Audit study via the e-filing ITR portal by September 30, 2025. Those requiring a taxation audit study indispensable subsequently record their ITR by October 31, 2025.
Income Tax Audit report: Who needs to record it?
Tax audit requirements for AY 2025-26, arsenic explained by Chartered Accountant Abhishek Soni, co-founder of Tax2Win successful an ET report, autumn nether Section 44AB and use to:- Businesses with turnover supra Rs 1 crore (limit increases to Rs 10 crore if currency transactions are ≤ 5%).- Professionals with gross receipts supra Rs 50 lakh.- People nether presumptive taxation (44AD/44ADA/44AE), if they state little profits than prescribed, and their income exceeds the basal exemption limit.
Income Tax Audit Deadline: What Happens to Late Submissions?
Regarding precocious submissions, Soni explains that nonaccomplishment to taxable the taxation audit study by September 30, 2025, nether Section 44AB whitethorn effect successful penalties nether Section 271B."This punishment is 0.5% of your turnover oregon gross receipts, capped astatine Rs 1.5 lakh, unless you tin show a tenable cause.
For instance, a superior illness, earthy disaster, oregon method glitch. Even if the punishment applies, you tin inactive taxable the audit study later, but the hazard of punishment remains unless adequately justified to the taxation officer,” ET quotes him arsenic saying.If your accounts necessitate taxation audit nether Section 44AB and you haven't submitted the audit report, filing a valid ITR by October 31, 2025, becomes problematic. However, whilst missing the September 30, 2025, deadline for taxation audit submission, you support the enactment to taxable it afterwards with applicable penalties.Soni says "The income taxation portal usually requires the audit study to beryllium uploaded earlier oregon on with the ITR. Filing without it whitethorn pb to the ITR being treated arsenic defective oregon adjacent invalid nether Section 139(9). In specified cases, the payer risks penalties, interest, and notices from the department."
Income Tax Audit Forms: Top changes
According to Riaz Thingna, Partner, Grant Thornton Bharat: "The Central Board of Direct Taxes (CBDT) has notified amendments successful Form No. 3CD (Tax Audit Report nether Section 44AB of the Income-tax Act, 1961 ('IT Act')), with an purpose to amended taxation audit reporting and alignment with caller legislative changes. These amendments are effectual from April 1, 2025. The changes person been made to aggregate clauses, and important changes include:Settlement Payment Requirements (Clause 21(a))Reporting is present required for expenditure incurred successful settling proceedings related to contraventions specified by the cardinal authorities successful the Official Gazette.Share Buy-back Reporting (Clause 36B)Documentation is indispensable for amounts received during stock buy-backs nether Section 2(22)(f) of the IT Act, including acquisition costs.Enhanced MSME Documentation (Clause 22)New requirements see reporting payments owed to MSMEs nether the MSMED Act, specifying amounts paid wrong statutory timeframes and those exceeding prescribed limits, which are not permissible nether the IT Act.Outdated Deduction Sections EliminatedThe signifier nary longer includes sections 32AC, 32AD, 35AC, and 35CCB, ensuring compatibility with existent IT Act provisions.Digital Verification UpdateIndividual taxpayers and HUFs tin present authenticate Form 3CB-3CD utilizing Electronic Verification Code (EVC), reducing dependence connected Digital Signature Certificates.
