Income Tax Audit Report 2025: Last Day On Sept. 30—Who Needs To File A Tax Audit?

With the tax audit deadline around the corner, businesses and professionals must ensure their reports for the financial year 2024-25 (Assessment Year 2025-26) are submitted on time. Taxpayers required to file the report must do so on the Income Tax Department’s e-filing portal by Sept. 30.

This applies to entities like companies, proprietorships, and partners in firms, whose accounts are subject to audit. While the final date to file the Income Tax Return (ITR) is Oct. 31, the audit report must be submitted first.

A tax audit, conducted under Section 44AB of the Income Tax Act, is a financial check of a business or professional’s accounts. It verifies that income, expenses, and deductions are correctly recorded and taxes are calculated as per the law.

It helps verify that businesses and professionals report their income accurately and claim only legitimate deductions. The audit report uses forms like 3CA/3CB and 3CD, which provide information about the taxpayer’s accounts and financial transactions.

Who Needs To File A Tax Audit Report?

A tax audit is required for:

• Businesses with annual turnover exceeding Rs 1 crore (the limit rises to Rs 10 crore if cash transactions are 5 per cent or less of total turnover).

• Professionals with gross receipts over Rs 50 lakh.

• Taxpayers under presumptive taxation schemes (Sections 44AD, 44ADA, 44AE) if declared profits are below prescribed limits and total income exceeds the basic exemption threshold.

Missing the Sept. 30 deadline may attract a penalty under Section 271B. The penalty is 0.5 per cent of turnover or receipts, up to Rs 1.5 lakh, unless there is a valid reason like illness, a natural disaster, or technical problems.

Even if the penalty applies, taxpayers can submit the audit report later. Filing the ITR without the audit report may render the return defective or invalid under Section 139(9), subjecting taxpayers to penalties, interest, and notices from the department.

The tax auditor must submit the tax audit report online using their Chartered Accountant login. Taxpayers are required to provide their CA’s details on the income tax portal to enable the process. After the report is uploaded, the taxpayer can either accept or reject it. If rejected, the auditor must resubmit the report, and this process continues until the taxpayer accepts it.