Shopping cart
Your cart empty!
Income Tax Audit 2025: Deadlines, Rules, and Penalties You Must Know
The income tax audit deadline for FY 2024–25 is fast approaching, and taxpayers who fall under the audit bracket need to act quickly. Here’s a quick guide to key dates, rules, and penalties.
Key Deadlines
-
Audit Report Submission: September 30, 2025
-
Income Tax Return (ITR) Filing for Audited Accounts: October 31, 2025
The audit report must be filed before the ITR, and as of now, the Income Tax Department has not announced any extensions.
What is a Tax Audit?
A tax audit is essentially a financial check-up. It reviews a business or professional’s accounts to ensure that income, expenses, and deductions are accurately recorded and that taxes are calculated according to the law. It is compliance-focused, not a fault-finding exercise.
Who Needs a Tax Audit?
-
Businesses: Turnover exceeding Rs 1 crore in a year. For businesses where cash transactions are less than 5%, the limit is Rs 10 crore.
-
Professionals: Annual receipts above Rs 50 lakh.
-
In certain cases, an audit may be required even if these thresholds are not met.
Penalties for Late Filing
Failure to file the audit report on time can be costly. Under Section 271B of the Income Tax Act:
-
Penalty is 0.5% of total sales, turnover, or receipts, up to a maximum of Rs 1,50,000.
-
Relief may be granted if a valid reason is provided for the delay.
Why Compliance Matters
Timely audit compliance is essential for businesses and professionals. Filing the report on time not only avoids penalties but also ensures a smooth ITR filing process.
With just days left, taxpayers under the audit bracket should ensure their accounts are up-to-date and reports submitted promptly.
10
Published: Sep 24, 2025
All India Story
All India Story is your trusted source for comprehensive and up-to-the-minute news coverage across India. Bringing you the latest on politics, business, technology, entertainment, sports, and more, we are dedicated to keeping you informed with accurate, engaging, and insightful stories from every corner of the nation.
Related to this topic:
ITR Refund Status: Check Online & Reasons for Delay
Sep 24, 2025
