The Income Tax Department has extended the deadline for filing Income Tax Returns (ITRs) for companies and taxpayers whose accounts require an audit for the Assessment Year (AY) 2025–26. As per the latest notification by the Central Board of Direct Taxes (CBDT), the new due date for filing ITRs has been shifted from October 31, 2025, to December 10, 2025. This extension has been widely welcomed by businesses, industry associations, and chartered accountants who had requested more time due to audit workload and disruptions caused by heavy monsoon rains in several parts of India.
The CBDT also announced that the deadline for submitting audit reports for the financial year 2024–25 has been extended to November 10, 2025. The move comes as a relief for companies, partnership firms, and other entities that were struggling to complete their accounting work and audits on time.
In its official circular, the CBDT stated that the decision was made under the powers of Section 119 of the Income Tax Act, 1961, which allows the Board to provide relaxation in cases where taxpayers face genuine difficulties in meeting deadlines. The notification mentioned that the due date for furnishing the return of income under sub-section (1) of Section 139 for AY 2025–26, originally October 31, has now been extended to December 10, 2025.
This new timeline applies to all assessees whose accounts are required to be audited, including companies, limited liability partnerships (LLPs), and other firms falling under clause (a) of Explanation 2 to sub-section (1) of Section 139. The extension also affects entities engaged in businesses or professions where audit certification under Section 44AB of the Act is mandatory.
The CBDT’s latest move provides much-needed relief, particularly for tax professionals and small firms who faced challenges in closing their books due to heavy rains, floods, and administrative delays. In some regions, continuous rainfall and waterlogging had disrupted business operations, making it difficult for accountants and auditors to finalize financial statements.
The new deadline of November 10 for audit report filing gives professionals more time to complete verification processes and upload reports without last-minute pressure. For companies and firms that rely on audited financial data to file their returns, this sequential extension ensures smoother compliance and reduces the risk of penalties or late fees.
Industry experts believe that the CBDT’s decision reflects the government’s understanding of the ground realities faced by taxpayers this year. Heavy monsoon activity, infrastructure issues, and delayed audit appointments had made it hard for businesses to adhere to the original October 31 deadline.
In addition, the peak audit season overlaps with the festive period in India, when many offices function with limited staff. The combination of workload pressure and environmental challenges had prompted several industry associations — including the Institute of Chartered Accountants of India (ICAI) and the Confederation of Indian Industry (CII) — to formally request the government to extend the timelines.
Earlier, the CBDT had already given taxpayers one round of relief by pushing the audit report submission deadline from September 30 to October 31, 2025. The new announcement marks the second extension, highlighting the government’s willingness to accommodate genuine compliance difficulties rather than impose strict penalties.
Tax professionals also pointed out that many corporate taxpayers faced delays due to interlinked filing requirements, such as reconciliation of Goods and Services Tax (GST) data, verification of Tax Deducted at Source (TDS) records, and adjustments related to depreciation and carry-forward losses. With the new timeline, companies can complete these technical steps more accurately.
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While the latest extension specifically benefits corporates and audited entities, the government has also shown leniency toward individual taxpayers earlier this year. The deadline for individuals and Hindu Undivided Families (HUFs) filing their returns had been extended twice — from July 31 to September 15, and then again to September 16, 2025. By the close of that window, the Income Tax Department reported a record response, with over 7.54 crore returns filed and nearly 1.28 crore taxpayers making self-assessment tax payments.
These record numbers reflect both the government’s improved digital infrastructure and taxpayers’ increasing compliance awareness. However, experts say the system still faces high traffic during peak filing periods, leading to website slowdowns and login errors — another factor that supports the need for deadline flexibility.
Industry and professional bodies have appreciated the CBDT’s proactive approach, saying that the decision ensures better quality filings and prevents rushed submissions that often lead to mistakes. According to several chartered accountants, this extension will also help in ensuring accurate audit reports, which are vital for tax compliance and financial transparency.
The government’s decision aligns with its broader effort to make the tax administration more taxpayer-friendly, especially in a year marked by erratic weather and regional disruptions. With digital systems like the Income Tax portal and AIS (Annual Information Statement) playing a key role in compliance, the extra time also allows taxpayers to reconcile their records thoroughly.
Looking ahead, tax experts suggest that the CBDT should consider introducing a more flexible annual calendar that automatically factors in seasonal and regional disruptions. Many also recommend staggered filing schedules based on business categories to ease server load and improve efficiency.
For now, the government’s move to extend both the audit and ITR filing deadlines till November 10 and December 10, 2025, respectively, offers timely relief and a smoother compliance path for India’s corporate and business community.
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