Tax Audit Deadline & Compliance Guide for FY 2024-25

Tax Audit Deadline/ Key Dates, Applicability & Compliance Guide for FY 2024-25:

Among the most crucial compliance deadlines in the Income Tax Calendar 2025, the Tax Audit deadline holds special importance for businesses, professionals, and partnership firms. Key Dates for FY 2024-25

• Tax Audit Report Submission Deadline: 30th September 2025
• Income Tax Return Filing Deadline (for audit cases): 31st October 2025

Timely completion of the tax audit is essential, as Income tax return in audit cases cannot be filed unless the audit report is submitted and accepted on the Income Tax Portal.

What is a Tax Audit?

A Tax Audit is a review of accounts conducted by a Chartered Accountant (CA) to ensure that an assessee has complied with the provisions of the Income Tax Act in reporting income, claiming deductions, and maintaining books of account.

Tax Audit is mandated u/s 44AB of the Income Tax Act, 1961.  Types of Tax Audits

1. Correspondence Audit – Done through letters/emails seeking clarification or documents.
2. Office Audit – The assessee is required to visit the tax office with relevant documents.
3. Field Audit – A tax officer visits the assessee’s premises or accountant’s office.

Tax Audit Due Date for FY 2024–25

Particulars	Due Date
Submission of Tax Audit Report	30th September 2025
Filing INCOME TAX RETURN for Audit Cases	31st October 2025

Forms Used in Tax Audit

• Form 3CA: For taxpayers who are already required to get their accounts audited under other laws (e.g., Companies Act).
• Form 3CB: For taxpayers not required to get their accounts audited under any other law.
• Form 3CD: Statement of particulars to be furnished with either of the above.

Who is Required to Get a Tax Audit Done?

Tax Audit for Businesses – U/s 44AB(a)/(e)

Condition	Applicability
Turnover > ₹1 crore	Tax Audit is mandatory
Turnover > ₹10 crore (from AY 2021-22)	Only if 95% or more business transactions are digital
Opted for Presumptive Taxation (44AD)	No audit if turnover ≤ ₹2 crore and profit ≥ 8% (6% digital)
Declared profit < 8%/6% under 44AD	Tax audit mandatory even if turnover < ₹2 crore

Tax Audit for Professionals – U/s 44AB(b)

Condition	Applicability
Gross receipts > ₹50 lakh	Tax Audit is mandatory
Presumptive Scheme (44ADA) with profit ≥ 50%	No audit if receipts ≤ ₹75 lakh (digital) or ₹50 lakh
Declared profit < 50% under 44ADA	Tax Audit required

If a taxpayer’s business or profession meets the criteria u/s 44AB, tax audit compliance is mandatory. With the deadlines of September 30 and October 31, 2025 approaching for FY 2024-25, it’s advisable to initiate audit procedures early, maintain proper records, and coordinate closely with your chartered accountant.

Taxpayers should avoid the last-minute rush during the busy September–October period. Helps in early detection of discrepancies or errors in books. Ensures sufficient time for correction, client verification, and uploading of reports.

Tax Audit Requirement for Partnership Firm- Even with 2% net profit, since turnover is under INR 1 crore and presumptive scheme was never opted.

• Section 44AB (Tax Audit Limit): A tax audit is mandatory if turnover exceeds ₹1 crore (raised to ₹10 crores if cash receipts and payments do not exceed 5%). Since Partnership Firm’s turnover is below ₹1 crore, Section 44AB by itself does not apply.
• Section 44AD (Presumptive Taxation): Eligible assessees (individuals, HUFs, partnership firms other than LLPs) with turnover ≤ ₹2 crores can declare income at 8% (6% for digital receipts). If such assessee declares lower income and total income exceeds the basic exemption limit, audit becomes mandatory. However, this rule applies only if the assessee is eligible and has opted for presumptive taxation in the first place.
• Turnover: Below ₹1 crore. Net profit: 2%. then Firm has never opted for Section 44AD in earlier years. Hence, the clause for compulsory audit under Section 44AD(5) does not trigger.No tax audit is required for your firm in this case, even with 2% net profit, since turnover is under ₹1 crore and presumptive scheme was never opted.

Consequences of Missing Tax Audit Deadline

• Penalty u/s 271B: ₹1,50,000 or 0.5% of total sales/turnover/gross receipts, whichever is lower.
• Loss of business deductions and delay in filing income tax returns.
• Ineligibility for carry forward of losses if the income tax return is not filed by the due date.