Why an Extension of the Income Tax Audit Due Date for FY 2024-25 is the Need of the Hour

Why an Extension of the Income Tax Audit Due Date for FY 2024-25 is the Need of the Hour

As the statutory due date for filing Income Tax Audit reports for FY 2024-25 approaches, taxpayers, chartered accountants, and stakeholders across India are grappling with overwhelming compliance burdens. Every year, representations are made to the Central Board of Direct Taxes (CBDT) for extending the deadline due to various challenges—this year is no exception. From technical glitches on the Income Tax Portal to practical difficulties in collating and finalizing data, the need for a reasonable extension has been consistently highlighted by professional bodies, trade associations, and practitioners.

Ground Reality: Compliance Pressure
The reporting requirements for FY 2024-25 are more extensive than ever before. Tax audits require reconciliation with GST data, compliance with multiple amendments, and detailed disclosures such as updated reporting under Clause 44 and other expanded schedules. Many businesses, especially MSMEs, are struggling to provide accurate data on time. For professionals, managing multiple audits simultaneously within a compressed timeline has created significant strain.

Adding to the burden, the government released ITR-3 and ITR-4 utilities/schemas much later than expected:

• ITR-4 was released on 30 May 2025, broadly in line with earlier timelines.

• ITR-3, however, was only released on 11 July 2025, almost 40 days later than the usual schedule, which typically aligns with the release of ITR-1/ITR-4 at the end of May.

This delay has a cascading effect. With the ITR filing due date just concluded on 16th September, professionals have been left with barely 14 days to complete the exhaustive process of audits. The fraternity has rightly raised concerns—how can audits requiring extensive reconciliations, cross-verifications, and disclosures be completed within such an unreasonably short timeframe?

Communication from Professional Bodies
Several institutions and associations have already raised the issue with CBDT:

• The Institute of Chartered Accountants of India (ICAI): ICAI has written multiple letters to CBDT highlighting technical glitches on the portal, excessive workload, and the necessity of extending the due date to allow error-free filing.

• Bar Associations: Various Income Tax Bar Associations across the country have also addressed their concerns, citing genuine hardships faced by taxpayers and professionals in meeting deadlines.

• Trade and Industry Bodies: These organizations have actively supported the request for extension, stressing that compliance pressure should not affect business operations.

Social Media Advocacy
The demand for extension for FY 2024-25 has gained momentum on platforms like Twitter (now X), where professionals and associations have collectively raised their voices. Thousands of tweets, tagged with CBDT and Finance Ministry handles, reflect the widespread concern within the community. Hashtags like #ExtendDueDate, #AuditDueDate, and #TaxAuditRelief have trended multiple times, amplifying the message.
 

• Fortune India reports that “more than 6,000 tweets” were seeking deadline extension of ITR/audit deadlines.  

• Upstox reports that on September 8, 2025, there were over 9,000 posts on X (formerly Twitter) using the hashtag “#Extend_Due_Date_Immediately” relating to ITR filing deadline extension demands.  

 

Why Extension is Justified

1. Portal Glitches: Frequent downtimes and slow processing times on the Income Tax Portal are well-documented.

2. Volume of Work: Professionals are handling multiple audits, GST compliances, and other filings within overlapping timelines.

3. New Reporting Requirements: The additional disclosure requirements for FY 2024-25 significantly increase compliance time.

4. Compressed Timeline: With ITR-3 released only on 11 July 2025 (40 days late) and the due date for ITRs ending on 16 September, auditors have been left with only 14 days to complete statutory audits.

5. Error-Free Reporting: A rushed compliance process leads to errors, increasing future litigation and notices.

An extension of the Income Tax Audit due date for FY 2024-25 is not just a request—it is a necessity to ensure quality compliance and reduce undue pressure on both taxpayers and professionals. CBDT’s timely decision to provide relief would demonstrate an understanding of ground realities and help build a more cooperative compliance environment.

Now, lets see - what CBDT do...