Indore CA Moves High Courts: Calls for More Time in Tax Audit Filing

Indore CA Moves High Courts: Calls for More Time in Tax Audit Filing

As the due date for tax audits for financial year 2024-25 is approaching, it is causing concern among traders, CAs, professionals and tax consultants. However, with just 7 days remaining, leaving a large number of audits and returns pending, only 4 lakh out of 40 lakh 10 thousand audit reports have been filed.

Due to the start of Navratri, traders are unable to give proper time to audits. Because of these problems, one chartered accountant from Indore has filed petitions in High Courts (including Indore, Gujarat, Punjab, and Kolkata) to extend the deadline for tax audits and return filing, with the Madhya Pradesh Tax Law Bar Association requesting an extension of the audit report deadline to November 30, 2025, and return filing to December 30, 2025, along with a waiver of late fees and interest.

Commissioners of Bhopal and the Chief Commissioner of Indore have also been sent. Association President stated that work has been affected by the slow speed of the income tax portal and continuous technical difficulties.

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Many changes in the ITR and audit report formats made it hard to prepare on time. Difficulties with internet connectivity in rural and small towns and recent natural disasters like rain and floods made it difficult to collect documents. More time is required for proper filing. Sufficient time is essential to ensure a quality audit. Not only in Madhya Pradesh, but also in High Courts across the country, petitions have been filed to extend the deadline for tax audits and return filing.

The argument being made in court is that it is practically impossible for taxpayers and professionals to complete audits and file returns in such a short time.

Association President said that extending the time limit will not only protect the rights of taxpayers but also enable CAs and tax professionals to complete audits with better quality.

This will reduce tax disputes in the future and make the direct tax system more transparent.