ITR deadline extended to Dec 10 for firms under audit: Details explained

ITR Deadline: Professionals and other assessees covered under Section 44AB of the Income Tax Act will benefit, too

Don't want to miss the best from Business Standard?

The deadline for filing Income Tax returns (ITR) by companies and entities subject to audit has been extended to December 10 for assessment year (AY) 2025–26.

 

Under the Income Tax Act, 1961, the usual deadline for filing ITR for businesses, partnership firms, and other entities that require an audit is October 31. The Central Board of Direct Taxes (CBDT) has extended the deadline by more than a month.

 

The last date for submitting the tax audit report has also been extended from October 31 to November 10, according to a statement by the CBDT.

 

Earlier, in September, the department had extended the audit report deadline by one month to October 31, following multiple representations from professional bodies and industry associations. These groups had cited disruptions due to floods and natural calamities in several parts of the country, which affected normal business operations and compliance processes.

Who benefits from the ITR Deadline extension?

 

The extension applies to:

 

• Companies whose accounts are subject to audit
• Partnership and proprietorship firms that fall under audit requirements
• Professionals and other assessees covered under Section 44AB of the Income Tax Act

 

For individual taxpayers and Hindu Undivided Families, the ITR filing deadline was extended earlier, first from July 31 to September 15, and subsequently to September 16, by when over 75.4 million returns were filed, according to news agency, PTI.

Penalties for missing the new deadline

Tax experts caution that missing the revised deadlines could invite penalties under the Income Tax Act.

 

“If a taxpayer fails to file the tax audit report within the prescribed due date under Section 44AB of the Income Tax Act, 1961, they may face a penalty under Section 271B equal to 0.5 per cent of total sales, turnover, or gross receipts, subject to a maximum of Rs 1.5 lakh,” said Gaurav Jain, partner, direct tax, Forvis Mazars India.

 

However, he added that if the delay is due to a reasonable cause, such as technical glitches or unavoidable circumstances, the penalty may be waived under Section 273B. “Apart from the monetary penalty, non-filing of the audit report can also attract scrutiny from the Income Tax Department and affect the taxpayer’s credibility,” Jain said.

 

With the compliance season in full swing, the extended timelines are expected to provide breathing space for tax professionals and businesses struggling with audit and reporting backlogs. For many, the announcement offers welcome relief amid operational disruptions and tight filing schedules.

 

(with inputs from PTI)