The High Court in Rajasthan extended the deadline for reporting a tax audit (TAR) after receiving more complaints about defects on the portal and disruption of e-feds caused by natural disasters such as floods and landslides. These disasters have influenced the Internet, transport and energy supply, which makes adherence to deadlines.
The Association of Tax Advocates Jodhpur in Post X confirmed that the HC ordered the Central Government and the Central Council of Direct Taxes (CBDT) to extend the due date of the tax audit.
“We are pleased to inform you that the Hon’ble Rajasthan High Court has extended the due date for the tax audit reports,” Jodhpur’s tax authority wrote to X (formerly Twitter).
What is the new term?
In the Provisional Order issued on Wednesday, September 24, the High Court ordered the competent authorities to extend the due date to 31 October 2025 from the earlier date of 30 September 2025.
Now that the court order is already out, it is now up to CBDT to act and follow the court order of Rajasthan HC.
Reasons for extension
On Tuesday, September 23, the CBDT President submitted a Memorandum Federation of Tax Practitioners (AIFTP) and sought to extend the day of maturity for reports on tax audit for 2025-26.
PTI previously reported that a group of tax practices referred that the deadline for reporting a tax audit will be moved from September 30 to 31 October.
The group emphasized that several states were seriously influenced by natural disasters such as floods and landslides, causing extensive disruption of the Internet, transport and energy supply, and therefore made it difficult to meet the deadlines.
Other reasons included technical defects and delays as a result of upcoming festivals such as Navratri, Durga Puja, Dussehrai and Diwali, resulting in frequent travel, which further affects the time of compliance with taxpayers and experts.
What is a tax audit report (TAR)?
The tax audit concerns the investigation of the company’s financial records or a professional to verify the consistency with the income tax Act. It is basically a process of thorough review to ensure that income, expenditure and deductions are correctly reported and that tax calculations are accurate.
The tax audit concerns adherence to income tax and is required for some taxpayers depending on their income or turnover.
The taxpayer must undergo a tax audit if their turnover or gross income exceed £1 crore in the financial year, or £10 Crore, if cash transactions represent less than 5 % of total transactions, which means that cash income or payments do not exceed 5 % of the total. On the other hand £50 Lakh per year.
(Tagstotranslate) Tax audit Date of extension
