In a major relief for taxpayers and the accounting fraternity, the Central Board of Direct Taxes (CBDT) on Thursday extended the deadline for filing audit reports for Assessment Year 2025–26 by one month, shifting the date from September 30 to October 31, 2025.

The decision comes just a day after chartered accountants (CA) , tax professionals at several places including  Ludhiana staged a symbolic “pen-down protest” , demanding an extension of the deadline. Professional bodies had argued that the late notification of audit forms, coupled with persistent workload and procedural hurdles, left inadequate time for timely completion of audits.

In its statement issued today (September 25th) , the CBDT acknowledged having received multiple representations from professional associations across the country, including CA groups, citing difficulties in meeting the September 30th timeline. It noted that recent floods and natural calamities in some regions had further disrupted business and professional activity. The matter, the Board said, had also been raised before High Courts.

At the same time, the CBDT clarified that the income-tax e-filing portal was “operating smoothly and without any technical glitches.” According to official figures, more than 4.02 lakh Tax Audit Reports had been uploaded by September 24, with over 60,000 reports filed in a single day. Till September 23, more than 7.57 crore income tax returns had also been filed successfully.

Despite asserting that the portal was functioning well, the Board said it was “keeping in view the representation of tax practitioners and their submissions before the Hon’ble Courts” while granting the one-month extension. A formal notification is expected shortly.

The announcement is being seen as a significant victory for tax professionals, particularly in Ludhiana, where associations including the District Taxation Bar Association (Direct Taxes), Indirect Tax Consultants Association, and Federation of Chartered Accountants Associations had united to withhold uploads in protest. Leaders at the demonstration had highlighted that audit and return forms were issued only in July, leaving barely two weeks for voluminous audit work after the September 15 income tax return deadline.

The extension until October 31 is expected to provide much-needed breathing space for professionals to complete audit reports without resorting to repeated submissions or working under extreme pressure. It also signals that sustained professional pressure, coupled with judicial interventions, has compelled authorities to consider ground-level realities.

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