Tax Audit FY 2024-25: Deadlines & Compliance

Current position — reviewed 22 August 2026

The thresholds below continue to apply. The dates in this article relate to FY 2024-25; for the cycle now running use the following.

• FY 2025-26 (AY 2026-27): tax audit report due 30 September 2026, return of income due 31 October 2026, and 30 November 2026 where transfer pricing reporting applies.
• Audit under section 44AB is triggered above ₹1 crore of business turnover, raised to ₹10 crore where both cash receipts and cash payments stay within 5%; for professionals the threshold is ₹50 lakh.
• A taxpayer who opted out of the presumptive scheme within the lock-in period, or whose declared income falls below the presumptive rate with income above the basic exemption limit, is also required to obtain an audit.
• From 1 April 2026 the audit provisions of the Income-tax Act, 2025 apply, with the thresholds unchanged.

Understanding the Tax Audit

A tax audit is not just a procedural requirement — it’s a critical compliance step that validates your financial statements and ensures that your reported income, expenses, and deductions are in line with the provisions of the Income Tax Act, 1961.

Conducted by a Chartered Accountant (CA), a tax audit serves two purposes:

1. To ensure the accuracy and transparency of your financial reporting.
2. To confirm that your business or profession complies with the law in both letter and spirit.

For the financial year 2024-25, the Income Tax Department has set two important deadlines:

• Tax Audit Report Submission: 30 September 2025
• ITR Filing for Audit Cases: 31 October 2025

Your ITR cannot be filed until the tax audit report is uploaded and accepted — making these dates non-negotiable for anyone under the tax audit mandate.

Applicability – Who Needs a Tax Audit?

Businesses (Section 44AB(a) & (e))

• Turnover > ₹1 crore → Audit is mandatory.
• Turnover > ₹10 crore → Audit applicable only if 95%+ business transactions are digital.
• Presumptive Taxation under Section 44AD:
• No audit if turnover ≤ ₹2 crore & profit ≥ 8% (6% for digital transactions).
• Audit mandatory if profit < prescribed % OR if you opt out after previously opting in.

Professionals (Section 44AB(b))

• Gross Receipts > ₹50 lakh → Audit is mandatory.
• Presumptive Taxation under Section 44ADA:
• No audit if profit ≥ 50% & receipts ≤ ₹50–75 lakh (depending on % digital receipts).
• Audit mandatory if profit < 50%.

Types of Tax Audits

1. Correspondence Audit – Done remotely through official communication requesting documents.
2. Office Audit – Taxpayer is called to the tax office with necessary paperwork.
3. Field Audit – The auditor visits the taxpayer’s business or residence to inspect records.

Forms Required for Tax Audit Filing

• Form 3CA – For taxpayers already audited under other laws (e.g., Companies Act).
• Form 3CB – For all other taxpayers requiring a tax audit.
• Form 3CD – A detailed statement of particulars annexed to 3CA/3CB.

Why Timely Compliance Matters

• Penalties Under Section 271B – Up to ₹1,50,000 for late or missed audits.
• Delays in ITR Processing – Your tax return can’t be processed until the audit report is filed.
• Business & Funding Risks – Pending audits can complicate loan approvals, investor deals, and government tender applications.

Action Plan to Prepare for Tax Audit FY 2024-25

1. Assess Applicability – Check turnover, gross receipts, and method of taxation.
2. Update Books of Accounts – Ensure all entries are reconciled and matched with bank statements.
3. Organize Supporting Documents – Bills, invoices, receipts, contracts, and payment proofs.
4. Coordinate with Your CA Early – Avoid last-minute errors and filing stress.
5. Check Digital Transaction Compliance – If claiming digital transaction exemptions, ensure your numbers meet the 95% threshold.

Final Words

The tax audit is not just about avoiding penalties — it’s about building credibility for your business or profession. Timely and accurate audits help in smooth ITR processing, improve trust with stakeholders, and position your business for future growth.

Mark these dates now:

• 30 September 2025 – Tax Audit Report Due
• 31 October 2025 – ITR Filing for Audit Cases

Procrastination in tax compliance can be expensive. Preparation today ensures peace of mind tomorrow.