Tax audit date extension: Rajasthan HC orders CBDT to extend filing deadline; check details

The Rajasthan High Court has extended the deadline for filing tax audit reports (TAR) after receiving multiple complaints about glitches on the e-filing portal and disruptions caused by natural disasters such as floods and landslides. These disasters affected the internet, transportation, and power supply, making it difficult to meet deadlines.

The Jodhpur Tax Bar Association, in a post on X, confirmed that the HC has ordered the central government and the Central Board of Direct Taxes (CBDT) to extend the tax audit report due date.

“We are pleased to inform you that the Hon’ble Rajasthan High Court has extended the due date for filing of Tax Audit Reports,” the Jodhpur tax body wrote on X (formerly Twitter).

What is the new deadline?

In an interim order issued on Wednesday, September 24, the high court directed the respective authorities to extend the report filing due date to October 31, 2025, from an earlier deadline of September 30, 2025.

Now that the court order is already out, it’s now on the CBDT to take action and adhere to the Rajasthan HC Court order.

Reasons for the extension

On Tuesday, September 23, the All India Federation of Tax Practitioners (AIFTP) submitted a memorandum to the CBDT chairman, seeking an extension in the due date for filing tax audit reports for the assessment year 2025-26.

PTI reported earlier that the group of tax practitioners appealed that the deadline for filing tax audit reports be moved from September 30 to October 31.

The group highlighted that several states have been severely affected by natural disasters such as floods and landslides, which caused widespread disruptions to the internet, transportation and power supply, hence making it difficult to meet the deadlines.

Other reasons included technical glitches and delays due to upcoming festivals such as Navratri, Durga Puja, Dussehra, and Diwali, which result in frequent travel, further affecting compliance timelines for taxpayers and professionals.

What is a Tax Audit Report (TAR)?

A tax audit refers to examining a business or professional's financial records to verify compliance with the Income Tax Act. It is essentially a process of thorough review to ensure that income, expenses and deductions are correctly reported and that tax calculations are accurate.

The tax audit concerns income tax compliance and is required for certain taxpayers depending on their income or turnover.

A taxpayer must undergo a tax audit if their business turnover or gross receipts exceed ₹1 crore in a financial year, or ₹10 crore if cash transactions account for less than 5 per cent of total transactions, meaning cash receipts or payments do not exceed 5 per cent of the total. On the other hand, a tax audit is compulsory for professionals if their gross receipts exceed ₹50 lakh annually.