Income tax audit deadline: Why chartered accountants are seeking extension this year

With the September 30 deadline approaching for filing tax audit reports (TARs) under Section 44AB of the Income Tax Act, some Chartered Accountants (CAs) are reporting difficulties in completing audits on time due to a combination of technical, regulatory, and operational challenges.

Factors affecting timely filing

According to Prashant Thacker, Partner at Thacker & Associates, difficulties include delayed release of essential tax utilities and forms, overlapping deadlines from extensions for non-audit cases, and revised reporting formats, including those applicable to MSMEs.

Technical issues on the Income Tax e-filing portal, discrepancies in Form 26AS, Annual Information Statement (AIS), and Tax Information Summary (TIS), as well as concurrent compliance requirements under other regulatory frameworks, have contributed to delays.

“Natural events such as floods and landslides in some states have affected internet access, power supply, and mobility, adding to the challenges faced by CAs and taxpayers,” Thacker noted.

Regulatory congestion

Additional pressures arise from the extension of filing deadlines for non-audit tax returns, which reduced the available working days to complete audits by September 30.

The month also coincides with statutory audits for companies, LLPs, and trusts, as well as ROC compliances and sector-specific regulatory filings, increasing the workload for professionals.

Representation to CBDT

On September 23, the Direct Taxes Committee (DTC) of the Institute of Chartered Accountants of India (ICAI) submitted a representation to the Central Board of Direct Taxes (CBDT) highlighting challenges in using updated utilities and technical issues on the e-filing portal.

The DTC emphasised difficulties faced by taxpayers in filing both returns and tax audit reports, and noted issues in submitting Form 10AB for renewal of trust registrations, where the deadline is September 30, for registrations expiring on April 1, 2026, as per Upstox report.

Current developments

High Courts in states are hearing petitions from CA associations and taxpayers seeking deadline relief. Some courts have directed the CBDT to consider extensions, though a nationwide extension will depend on an official notification from the CBDT.