Tax Audit Due Sept 30: Is Your Business Ready?

If your business turnover crosses ₹1 crore (or ₹10 crore with digital payments), you must file a tax audit report by September 30. No extension has been announced this year. Here is what to do right now.

Here's what happened: The Income Tax Act requires businesses with turnover above ₹1 crore (₹10 crore for mostly-digital businesses) to file a tax audit report by September 30 each year.. No extension to the September 30 deadline has been officially announced for FY 2024-25, despite requests from professional bodies representing chartered accountants.. Missing the deadline triggers a penalty of 0.5% of total turnover or ₹1.5 lakh, whichever is lower, and can result in disallowance of key business deductions..

What you should do: Send your CA all finalised books, GST returns, TDS certificates, Form 26AS, and bank statements immediately — do not wait until late September.. Reconcile your GST turnover with your books of accounts now; any mismatch between GSTR-1, GSTR-3B, and your P&L is a red flag auditors flag first.. Check whether your business qualifies for the ₹10 crore threshold by verifying that at least 95% of your receipts and payments in FY 2024-25 were digital — if not, the ₹1 crore limit applies to you..

If your CA raises a qualification or adverse remark in the audit report, it automatically triggers higher scrutiny in future assessments — resolve every discrepancy before signing off, not after.

For readers weighing their credit and loan options, our personal loan guide and CIBIL score resources put this update in context.