Income Tax Audit 2025: The Income Tax Department has reminded taxpayers that the deadline to submit tax audits for the financial year 2024-25 is September 30. This comes shortly after the due date for filing income tax returns for most salaried individuals, Hindu Undivided Families (HUFs), and other entities.
Taxpayers whose accounts require official audits, including companies, proprietorships, and partners in firms, have to file their income tax returns by October 31 for FY25. But before this, they must submit the audit report by September 30. For now the government has not announced any extension for the tax audit submission.
ITR Due Date Extension 2025: What Taxpayers Need to Know About Penalties and Grace Period
A tax audit is essentially a financial check-up. It examines the accounts of a business or professional to ensure that all income, expenses, and deductions are properly recorded and taxes are calculated correctly. The audit confirms compliance with the Income Tax Act. Under Section 44AB, the law specifies which taxpayers need to get their accounts audited by a chartered accountant.
Who Should get a Tax Audit?
Not everyone needs a tax audit. Usually, businesses with a turnover or gross receipts above Rs 1 crore in a financial year must get an audit. In cases where cash transactions are less than 5% of total dealings, the turnover limit rises to Rs 10 crore. If a professional earns more than Rs 50 lakh in a year, they also need to get a tax audit done. Besides that the CBDT has some other cases where audits are needed too.
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Penalty for Missing the Deadline
If you don’t submit your tax audit on time, you can get a penalty under Section 271B of the Income Tax Act. The fine is 0.5% of your total sales, turnover, or receipts, but it can’t go more than Rs 1,50,000. The CBDT might give some relief if you have a good reason for the delay.
