ITR Filing 2025: Key Tax Audit Rules, Due Dates, and Late Fee Details
Eligible taxpayers, including individuals and businesses requiring an income tax audit, must submit their Tax Audit Report by September 30, 2025. Those who fall under this requirement must then file their Income Tax Return (ITR) by October 31, 2025.
Who Needs a Tax Audit
- For Assessment Year (AY) 2025–26, tax audit requirements under Section 44AB apply to:
- Businesses with a turnover above ₹1 crore (limit extended to ₹10 crore if cash transactions are ≤5%).
- Professionals with gross receipts exceeding ₹50 lakh.
Individuals under presumptive taxation (Sections 44AD/44ADA/44AE) who declare profits lower than prescribed and whose income crosses the basic exemption limit.
How to File the Tax Audit Report
- Tax audits must be conducted only by a Chartered Accountant (CA) using Forms 3CA, 3CB, and 3CD.
- The audit report must be uploaded on the Income Tax e-filing portal by the due date.
- The ITR can be filed only after or along with the audit report to avoid defects.
Penalties for Missing the Deadline
Failing to submit the audit report by September 30, 2025 can lead to a penalty under Section 271B:
- 0.5% of turnover or gross receipts, capped at ₹1.5 lakh.
- The penalty may be waived if a reasonable cause—such as serious illness, natural disaster, or technical glitches—is accepted by the tax officer.
Filing After the Deadline
Tax experts stated that even if you miss the September 30 deadline, you may still submit the audit report later with applicable penalties. However, filing the ITR without the audit report risks the return being treated as defective or invalid under Section 139(9), potentially inviting notices, penalties, and interest.
