If you’re a taxpayer whose accounts require an audit, mark your calendars—important deadlines are around the corner. The last date to submit the income tax audit report for FY 2024–25 is September 30, 2025, followed by the ITR filing deadline of October 31, 2025, for companies, proprietorships, and firm partners. These dates come soon after the ITR filing deadline for most individuals and HUFs, making it crucial to stay prepared and avoid last-minute stress.

Taxpayers should remember that the audit report needs to be filed by the September deadline before the ITR can be submitted. As of now, the Income Tax Department hasn’t given any extension, so it’s best not to wait until the last minute.

Understanding Tax Audit

A tax audit is basically a detailed check of a business or professional’s financial records to ensure everything matches the rules under the Income Tax Act. It helps confirm that income, expenses, and deductions are reported correctly and that taxes are calculated properly. Not everyone needs a tax audit—it’s mandatory only for certain taxpayers based on their income or turnover.

Who Needs a Tax Audit?

Not all taxpayers fall under the tax audit rule—it mainly applies to those crossing certain income or turnover limits. If you run a business with turnover above Rs 1 crore in a year, your accounts must be audited. This limit goes up to Rs 10 crore if cash transactions are kept below 5 per cent of total receipts and payments. For professionals, the rule applies if annual gross receipts cross Rs 50 lakh. Apart from these, some other specific cases may also make a tax audit mandatory.

What Happens If You Miss the Audit Report Deadline?

Delaying the filing of your audit report can lead to heavy penalties. As per Section 271B of the Income Tax Act, missing the September 30 deadline can attract a penalty of 0.5 per cent of your total sales, turnover, or receipts, capped at Rs 1,50,000. The good news is that if you have a genuine reason for the delay, the Income Tax Department may consider waiving the penalty.

Can You File ITR Without Submitting the Tax Audit Report?

If your accounts need to be audited under Section 44AB, you must first submit the audit report—otherwise, your ITR filed by October 31, 2025, won’t be considered valid. However, if you miss the September 30 deadline, you can still file the audit report later by paying the applicable penalty.