Overview

• An official CBDT notification extends the specified date for FY 2024–25 audit reports to October 31, 2025 for assessees covered by clause (a) of Explanation 2 to section 139(1).
• Interim orders from the Rajasthan and Karnataka High Courts directed an extension after petitions argued the original September 30 cutoff was unworkable.
• CBDT said the e‑filing portal is functioning smoothly, reporting 4.02 lakh tax audit reports uploaded by September 24 and 7.57 crore ITRs filed by September 23.
• Petitioners highlighted a large backlog, noting roughly 4 lakh TARs filed versus about 40 lakh in a typical year, with utilities released or changed late.
• Late audit filing can invite penalties under Section 271B of up to 0.5% of turnover capped at Rs 1.5 lakh, while auditors now face a compressed October that also includes ITR due dates for audited cases.