CBDT’s Circular on Extension of Timelines for Filing of Various Reports of Audit and Income Tax Returns (ITRs) for the Assessment Year 2025-26

CBDT’s Circular on Extension of Timelines for Filing of Various Reports of Audit and Income Tax Returns (ITRs) for the Assessment Year 2025-26

Issue: To provide necessary relief to assessees and tax professionals and address the statutory compliance pressure, the Central Board of Direct Taxes (CBDT) formally utilized its authority under Section 119 of the Income Tax Act to extend the deadlines for filing the Tax Audit Report (TAR) and the corresponding Income Tax Return (ITR) for the Assessment Year (AY) 2025-26.

Facts:

• The original deadline for filing the Tax Audit Report (TAR) for AY 2025-26 (Financial Year 2024-25) was September 30, 2025.
• The corresponding original deadline for filing the Income Tax Return (ITR) for audit cases was October 31, 2025.
• Taxpayer bodies had raised concerns regarding practical difficulties, portal issues, and the need to restore the mandatory one-month gap between the TAR and ITR deadlines.

Decision:

The CBDT issued a circular formally extending the statutory deadlines for both submissions:

• The due date for filing the Tax Audit Report (TAR) (under Section 44AB) was extended to November 10, 2025.
• The corresponding due date for filing the Income Tax Return (ITR) (under Section 139(1)) for assessees requiring a tax audit was extended to December 10, 2025.

Key TakeDowns:

• Official Compliance Relief: The circular provides a substantial relief of 40 days for both the Tax Audit Report and the Income Tax Return beyond the original deadlines, significantly easing the compliance burden.
• Statutory Gap Maintained: The extensions effectively maintain the necessary statutory one-month gap between the deadline for furnishing the Tax Audit Report and the deadline for filing the Income Tax Return, addressing judicial concerns raised in various High Courts.
• Legal Authority: The extensions were granted using the CBDT’s powers under Section 119 of the Income Tax Act, which authorizes the Board to relax provisions for genuine hardship.
• Applicability: These extensions apply only to taxpayers who are required to get their accounts audited under the Income Tax Act for AY 2025-26. Timely filing within the new extended deadlines ensures that taxpayers avoid penalty and interest charges.