Government Extends Income Tax Audit Deadline To October 7 Amid Filing Difficulties

The last date to file income tax audit reports has been extended to October 7. The government decision came after several taxpayers faced technical difficulties in electronic tax filings. The Central Board of Direct Taxes (CBDT) confirmed the extension in a notification on September 29, saying the new deadline applied to various audit reports, including the tax audit for the financial year 2023-24.

Previously set for September 30, taxpayers now have an additional week to meet their filing obligations.

In the September 29 circular, CBDT took into consideration the difficulties encountered by taxpayers and stakeholders in electronic filing. It stated, “On consideration of difficulties faced by the taxpayers and other stakeholders in electronic filing of various reports of audit under the provisions of the Income-tax Act, 1961 (Act), the Central Board of Direct Taxes (CBDT), in the exercise of its powers under Section 119 of the Act, extends the specified date of furnishing of the report of audit under any provision of the Act for the Previous Year 2023-24, which was 30th September 2024, in the case of assesses referred in clause (a) of Explanation 2 to sub-section (1) of section 139 of the Act, to 07th October 2024.”

The Income Tax Department also announced the extension on X (formerly Twitter).

Entities are subject to two categories of taxation — direct and indirect. Income tax is classified as a direct tax, for it is directly tied to the income of the taxpayer. This income can originate from sources, including salary, house property, business activities, capital gains and other avenues. An individual must pay income tax if their total income, after accounting for Chapter VI-A deductions, surpasses the threshold for taxable income.

Previously, several users expressed concerns about the slow performance of the e-filing portal, reporting difficulties that hindered the timely submission of their reports. This last-minute extension may offer some respite to taxpayers, as the penalty for late filing of a tax audit report is either Rs 1.5 lakh or 0.5 per cent of total sales, whichever is lower.