Significant Relief for Taxpayers Across India
In a major interim decision, the Rajasthan High Court’s Jodhpur bench has provided welcome relief to taxpayers by directing the Central Government and the Central Board of Direct Taxes (CBDT) to extend the due date for filing the Tax Audit Report (TAR) by one month—from September 30 to October 31, 2025. This ruling, issued on Wednesday, September 24, 2025, is expected to ease mounting pressure on taxpayers and professionals alike.
Next Hearing Date Announced
The next court hearing on the matter is scheduled for October 27, 2025, during which further directives may be issued.
Tax Bar Associations Instrumental in Securing the Extension
Joint Petition by Jodhpur and Bhilwara Associations
The extension is the result of a consolidated legal petition filed by the Tax Bar Associations of Bhilwara and Jodhpur. According to CA Ashok Kumar Jathliya, Regional Secretary of the Rajasthan Tax Bar Association, the court merged the separate petitions due to their overlapping concerns, ultimately resulting in this favorable interim order.
Support and Reaction from the Tax Community
CA Amit Kumar Seth, President of the Bhilwara Tax Bar Association, expressed his appreciation for the court’s timely intervention. “This verdict comes as a big relief, especially since it was delivered before the original September 30 deadline. We now look forward to prompt action from the government,” he said.
The Jodhpur Tax Bar Association also publicly acknowledged the court’s direction, stating in a social media post: “We are pleased to inform you that the Hon’ble Rajasthan High Court has extended the due date for filing of Tax Audit Reports from 30th September to 31st October.”
Reasons Behind the Deadline Extension Request
Technical and Administrative Challenges
In the petition submitted to the court, several challenges were cited as grounds for seeking an extension:
- Delayed Release of Utility Forms: Critical ITR utilities were released late, giving professionals less time to prepare and submit audit reports.
- Technical Glitches: Frequent issues with the income tax portal made timely submissions difficult.
- Previous Extensions for Non-Audit ITR Filings: Taxpayers not requiring audits had their ITR deadlines extended from July 31 to September 16, creating expectations for a similar extension for audited filings.
As CA Ashok highlighted, the absence of a deadline extension for TARs despite these challenges left tax professionals with no option but to seek judicial relief.
Awaiting CBDT’s Response to Court Order
Now that the Rajasthan High Court has issued its directive, it is incumbent upon the Central Board of Direct Taxes (CBDT) to officially extend the due date and comply with the court’s order. Stakeholders across the country now await formal notification from the CBDT in response to this development.
Understanding the Tax Audit Report (TAR)
What is TAR and Who Needs to File It?
Under Section 44AB of the Income Tax Act, certain classes of taxpayers are mandated to have their accounts audited by a Chartered Accountant. The objective of this tax audit is to ensure that the taxpayer is compliant with the provisions of the Income Tax Law.
Relevant Forms for TAR Filing
Chartered Accountants must submit their audit findings using specific forms:
- Form 3CA/3CB: Used based on the type of taxpayer and audit.
- Form 3CD: A detailed annexure to the audit report, providing extensive information on the taxpayer’s financials and compliance.
Conclusion
The Rajasthan High Court’s interim order brings substantial relief to both taxpayers and tax professionals, offering much-needed breathing space amidst a tight compliance calendar. With the matter now in the hands of the CBDT, taxpayers across the country await the formal extension of the tax audit report filing deadline to October 31, 2025.
