The deadline for Income Tax Audits is September 30, 2025, and as this deadline approaches, tensions have increased for businessmen and Chartered Accountants (CAs). This year, the Navratri festival is also approaching, making managing audits and ITR filing even more challenging.
Businessmen, traders, and CAs all want the government to extend the deadlines for audits and ITR filing, giving them the proper time to complete their work and reducing the risk of penalties.
Current Status of Tax Audits in India
Approximately 4 million audits are filed in India every year. But only 3.10 lakh audits have been completed so far. This means only 8% of audits have been completed, and only 10 days are left.
Audit scope:
- Large firms
- Companies
- Trusts
- Businesses
All these entities must complete their annual audits by September 30, 2025. If audits are not completed on time, businesses and CAs risk heavy penalties and financial loss.
Problems for Businessmen and CAs
1. Short Gap Between ITR and Audit
This year, ITR forms were issued late, and there is only a 15-day gap between audits. Normally, CAs need more time to verify clients’ accounts. But in this short time, they have to:
- Verify accounts for 365 days
- Complete multiple OTP and online verifications
- Submit audit reports
This process seems practically impossible.
2. Delayed ITR Forms
The Institute of Chartered Accountants of India (ICAI) informed the CBDT chairman that ITR forms were not issued on time this year, which is inconsistent with the Taxpayer Charter. This is causing further pressure on both CAs and businesses.
3. Impact of the Festive Season
Due to Navratri and other festivals:
- Scheduling meetings with clients is becoming difficult.
- Staff availability is low.
- Audits and account verifications are becoming time-bound tasks.
The combination of festivals and deadlines is creating a stressful situation.
4. Risk of Penalties
If audits are not completed, businesses could face penalties worth lakhs. Therefore, traders and businessmen want the government to extend the deadline to ensure proper compliance and avoid unnecessary penalties.
Demand for Extension
CAs and traders have appealed to the government to extend the deadline.
Requested Extension:
Tax Audit Deadline: 30 September 2025 → 30 November 2025
ITR Filing Deadline: 30 September 2025 → 31 October 2025
CA Pankaj, Central Council Member of ICAI, said that for fairness, taxpayers should be given adequate time. It is practically impossible to complete all audits in just 15 days.
Traders and businesses have also submitted memorandums and asked to raise demands through MPs and Ministers.
Key Compliance Affected
The annual audit deadline for large firms, companies, trusts, and NGOs is 30 September 2025.
If the deadline is not extended, NGOs and trusts will also face penalties and stress.
An ICAI delegation is meeting with the CBDT chairman and expects some extensions to be announced.
Why Extension Is Needed
- Time Constraints: Completing millions of audits in 15 days is almost impossible.
- Workload During Festivals: Navratri and other festivals reduce the availability of staff and CAs.
- Avoid Penalties: Extensions can help businesses avoid unnecessary penalties and financial losses.
- Accurate Compliance: Getting proper time ensures accurate audits and ITR filing, and the government will receive error-free submissions.
Opinion of ICAI and Traders
- CA Pankaj clearly stated that taxpayers and businesses should be given sufficient time.
- Traders and businessmen raised demand by submitting memorandums.
- Meetings are planned with the CBDT chairman, and it is expected that the deadline may be extended.
How Businesses Can Prepare in Remaining Time
Even if the deadline is not extended, businesses and CAs should take a few steps:
- Keep Client Accounts Ready: Organize all account documents and records.
- Use Digital Verification: Streamline OTP and online verification processes.
- Prioritize Key Clients: Focus on audits of high-risk and high-value clients first.
- Coordinate Staff: Manage staff availability during the festival season.
- Stay Updated on Notifications: Check updates and announcements from the ICAI and CBDT.
Businesses and CAs are using online platforms to streamline their audits and ITR filing processes which provides timely updates and legal compliance guidance to taxpayers.
Conclusion
The pressure of Income Tax Audit 2025 is immense for both businessmen and CAs. Completing millions of audits in just 10 days is nearly impossible.
- A government extension will reduce stress
- Penalties will be avoided
- Accurate filing will be ensured
- Compliance will also be possible during the festival
ICAI and traders are actively appealing to the government for a deadline extension and taxpayers hope this extension is announced.