Chartered accountants lobby for tax audit deadline extension amid portal glitches and new compliance rules
1. No tax audit deadline extension yet for AY 2025–26, but demands are high.
- The September 30, 2025, deadline for filing tax audit reports remains unchanged.
- The Chandigarh Chartered Accountants Taxation Association (CCTAX) formally requested an extension due to persistent issues like:
- Delayed release of ITR and tax audit utilities by up to three months.
- Ongoing technical glitches on the e-filing portal, including server crashes and data mismatches.
- New financial statement formats introduced by the Institute of Chartered Accountants of India (ICAI), requiring software updates and training.
- Disruptions from heavy monsoon rains across many states.
2. Form 3CD changes enabled with new reporting requirements.
- As of mid-July, the Income Tax Department enabled the updated tax audit report forms (3CA-3CD and 3CB-3CD) on the e-filing portal.
- Key changes for FY 2024–25 (AY 2025–26) include:
- Enhanced MSME reporting: Clause 22 now requires more detailed disclosures on payments to micro and small enterprises, including the status of payments and any interest disallowed under the MSMED Act.
- Buyback disclosures: Clause 36B was added to mandate reporting of receipts from the buyback of shares.
- Codified reporting: Clause 31 introduces mode codes to standardize the reporting of cash loans and deposits.
3. ICAI Guidance Note released to clarify new rules.
- The ICAI released a revised Guidance Note on Tax Audit in early August 2025 to help professionals navigate the new rules.
- The guidance covers practical aspects of the new requirements, including disclosures related to payments under the MSMED Act, GST reconciliation (Clause 44), and reporting of capital gains.
4. Taxpayers urged to prepare for the September 30 deadline.
- Given the possibility that no extension will be granted, tax professionals are advising taxpayers to prepare their documentation thoroughly.
- The current, compressed timeline due to delayed utilities and portal issues increases the risk of errors and non-compliance.