The month of October 2025 has brought a series of important updates for taxpayers, professionals, and businesses in India. From extended audit deadlines to a new Income Tax Act waiting to be implemented, this month marks a critical phase in the evolution of India’s direct tax regime. Here’s a detailed look at all the key developments you should be aware of.
1️⃣ The New Income Tax Act 2025: A Modern Rewrite of India’s Tax Law
The Government of India has officially notified the Income Tax Act, 2025 — a complete redrafting of the decades-old Income Tax Act, 1961.
This is one of the most significant tax reforms in recent times, intended to simplify language, reduce litigation, and align tax law with the digital economy.
- The new Act will come into effect from 1 April 2026, unless otherwise specified.
- The focus is on simplification rather than tax-rate change.
- It reduces the number of sections and eliminates several overlapping provisions.
- The Act uses plain, modern drafting to make compliance easier for individuals and businesses.
For FY 2024-25 (AY 2025-26), however, the existing 1961 Act continues to apply.
2️⃣ Due Date Extensions Announced
Recognizing the challenges faced by businesses during the transition and festive season, the Central Board of Direct Taxes (CBDT) has issued important extensions:
- 📅 Tax Audit Report (TAR) due date extended from 30 September 2025 → 31 October 2025.
- 📅 Some High Courts have directed the CBDT to extend ITR filing dates correspondingly to ensure procedural consistency.
Taxpayers are advised to keep monitoring the official portal (incometax.gov.in) for further circulars or state-specific relaxations.
3️⃣ Key Compliance Due Dates for October 2025
Below are the important TDS, TCS and other compliance deadlines applicable this month:
| Date | Particulars |
|---|---|
| 7 October 2025 | Deposit TDS/TCS for September 2025 |
| 15 October 2025 | Upload Form 15G/15H for Q2 (FY 2025-26) |
| 15 October 2025 | Furnish TCS statement for Q2 |
| 30 October 2025 | Submit challan-cum-statement under sections 194-IA, 194-IB, 194M for September 2025 |
| 31 October 2025 | Upload audit report under section 44AB (Tax Audit) |
Non-compliance with these deadlines may invite late fees and interest under sections 234F and 234E.
4️⃣ Income Tax Portal Enhancements
The Income Tax e-filing portal has added several new features to increase transparency and reduce uncertainty during assessments:
- ✅ Taxpayers can now view the exact time when an Assessing Officer (AO) or CIT(A) has opened or reviewed their submission in faceless proceedings.
- ✅ Improved tracking of refund status with enhanced fraud checks.
- ✅ Automatic reminders for pending verifications and document uploads.
These steps aim to build confidence in faceless assessments and streamline communication between taxpayers and the department.
5️⃣ Refunds Under Stricter Scrutiny
The IT Department has increased automated fraud and risk analytics on refund claims this year.
As a result, refund issuance has dropped by around 16 % Y-o-Y, even though total collections are up.
- The move targets bogus refund claims made through incorrect deductions or manipulated income entries.
- Genuine taxpayers, however, can expect faster resolution once verification is cleared.
- Direct tax collections between April–October 2025 have shown a 6 % growth compared to the same period last year — indicating stronger compliance and economic momentum.
6️⃣ What Tax Professionals Should Focus On
For CAs and tax practitioners, October 2025 is a busy month. The key focus areas include:
- Finalization of audit reports and e-filing of Form 3CD before 31 October 2025.
- Verification of TDS/TCS payments and Form 26AS reconciliation.
- Client communication regarding upcoming deadlines for ITR and statement submissions.
- Preparing for transition to the new Income Tax Act 2025 by reviewing how changes in definitions, deductions, and penalties might impact clients.
The emphasis should be on digital readiness — maintaining proper records, PAN-based reconciliation, and timely validation of uploaded forms.
7️⃣ Broader Policy Outlook
The government’s tax agenda remains focused on three pillars:
- Simplification of compliance processes,
- Digitization through automation and AI-driven assessments, and
- Transparency to minimize litigation.
The rollout of the Income Tax Act 2025 from April 2026 will mark a shift toward a cleaner, tech-enabled tax ecosystem. For now, the immediate task for taxpayers is to stay compliant with deadlines and adapt to the new digital features on the portal.
🧾 FAQs on Current Income Tax Updates
1. Is the new Income Tax Act 2025 applicable for FY 2024-25?
➡ No. It takes effect from 1 April 2026 (AY 2026-27) onwards.
2. Has the audit report filing date been extended?
➡ Yes. The due date is 31 October 2025 for AY 2025-26.
3. What is new on the Income Tax portal?
➡ You can now see when tax officials have reviewed your submissions — improving transparency in faceless assessments.
4. Why are refunds delayed this year?
➡ Due to stronger fraud-detection filters and verification processes before release.
5. What should taxpayers do this month?
➡ File audit reports on time, reconcile TDS credits, and ensure all Q2 statements are submitted before month-end.
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