India Compliance Roundup: October — Key Deadlines, Filings & Regulatory Updates

Why October Is the Peak Compliance Month in India

October is universally regarded as the heaviest compliance month for Indian companies, particularly those with foreign direct investment. Three major annual filings — the tax audit report, the transfer pricing report, and the income tax return for audit cases — all carry 31 October deadlines. Add in quarterly TDS returns, director KYC obligations, ROC financial statements, and ongoing GST filings, and the result is a month that demands careful planning and coordination between your finance team, statutory auditor, transfer pricing advisor, and company secretary.

For FY 2024-25 (Assessment Year 2025-26), the CBDT extended the tax audit report deadline to 31 October 2025, which also pushes the ITR filing date for non-transfer-pricing audit cases to the same date. Companies with international transactions face an additional layer — the transfer pricing report (Form 3CEB) is also due 31 October, with the ITR for these cases extended to 30 November 2025.

This roundup covers every October 2025 deadline, verified against the latest CBDT circulars and MCA notifications.

Tax Audit Report — Due 31 October

The tax audit report under Section 44AB of the Income Tax Act is the single most important filing in October. For FY 2024-25, the CBDT has confirmed the extended deadline as 31 October 2025.

Who Needs a Tax Audit?

A tax audit is mandatory if:

• Business turnover exceeds INR 1 crore (INR 10 crore if at least 95% of transactions are digital)
• Professional gross receipts exceed INR 50 lakh
• The assessee has opted out of the presumptive taxation scheme under Section 44AD/44ADA and total income exceeds the basic exemption limit

Most private limited companies with foreign investment will exceed the INR 1 crore threshold and are therefore subject to mandatory tax audit.

Forms Required

The tax audit involves two forms filed by the Chartered Accountant:

• Form 3CA: The audit report itself, certifying that the audit was conducted per Section 44AB
• Form 3CD: The statement of particulars — a detailed annexure covering 44 clauses that require specific disclosures about deductions claimed, compliance status, and tax adjustments

For companies audited under the Companies Act (which is the case for all companies with foreign investment), the statutory auditor files Form 3CA. For firms and individuals, Form 3CB applies instead.

Penalty for Non-Compliance

Failure to get the tax audit completed and filed by the due date attracts a penalty under Section 271B of 0.5% of total sales, turnover, or gross receipts — capped at INR 1,50,000. For a company with INR 5 crore turnover, the penalty would be INR 1,50,000 (the cap). However, the reputational and procedural consequences extend far beyond the monetary penalty — a missed audit filing delays the income tax return, triggers interest under Section 234A, and can prompt a scrutiny notice.

Transfer Pricing Report (Form 3CEB) — Due 31 October

For companies with international transactions or specified domestic transactions, the transfer pricing report under Section 92E is a critical October filing.

Applicability

Form 3CEB must be filed if:

• The company has entered into any international transaction with an associated enterprise (parent company, fellow subsidiaries, related entities) — regardless of value
• The company has specified domestic transactions exceeding INR 20 crore

For foreign-owned Indian subsidiaries, Form 3CEB is almost always mandatory because any payment to or from the parent company — management fees, royalties, technical service fees, inter-company loans, cost-sharing arrangements — constitutes an international transaction.

What Form 3CEB Covers

The form requires disclosure of:

• All international transactions by type (purchase/sale of goods, services, loans, guarantees, IP transfers)
• The arm's length method applied (CUP, TNMM, RPM, CPM, PSM)
• The arm's length price determined
• Whether the actual transaction price differs from the arm's length price

Penalties

Non-filing of Form 3CEB attracts a flat penalty of INR 1,00,000 under Section 271BA. Additionally, failure to maintain or furnish transfer pricing documentation attracts a penalty of 2% of the transaction value. If a transfer pricing adjustment is made during assessment, penalties of 100-300% of the additional tax can apply.

Given these stakes, companies should ensure their transfer pricing documentation is contemporaneous — prepared before the due date, not assembled retrospectively during an audit.

Income Tax Return (ITR-6) — Due 31 October / 30 November

The income tax return filing deadline depends on whether the company has transfer pricing obligations:

• 31 October 2025: For companies subject to tax audit under Section 44AB but without international/specified domestic transactions
• 30 November 2025: For companies required to furnish a transfer pricing report under Section 92E

Indian subsidiaries of foreign companies that are required to file Form 3CEB get an additional month — their ITR is due by 30 November. However, the tax audit report itself is still due by 31 October.

ITR-6 Key Considerations for Foreign-Owned Companies

• Section 115BAA election: Companies claiming the concessional 22% corporate tax rate (effective 25.17%) must file Form 10-IC before the return due date. This election is irrevocable.
• MAT credit: Companies transitioning from the old regime (30% + surcharge + cess) to Section 115BAA forfeit all accumulated MAT credit. Calculate this trade-off before filing.
• Foreign tax credit: Claim foreign tax credit using Form 67, filed before or along with the ITR. This is relevant if the Indian subsidiary earned any income taxed abroad.
• DTAA benefits: Ensure all treaty claims are properly documented with Tax Residency Certificates and Form 15CA/15CB compliance for outward remittances.

Late Filing Consequences

Filing ITR after the due date attracts:

• Late filing fee of INR 5,000 under Section 234F (INR 1,000 if total income is below INR 5 lakh)
• Interest at 1% per month under Section 234A on unpaid tax from the due date to the filing date
• Loss of the right to carry forward certain losses (business loss, speculation loss, specified business loss)

TDS/TCS Quarterly Returns — Due 31 October

The quarterly TDS returns for Q2 of FY 2025-26 (July to September 2025) are due by 31 October 2025.

Forms to File

• Form 24Q: TDS on salary payments for July-September
• Form 26Q: TDS on non-salary payments to residents
• Form 27Q: TDS on payments to non-residents under Section 195 — critical for reporting payments to the foreign parent
• Form 27EQ: TCS collected during July-September

Monthly TDS Deposit — Due 7 October

TDS deducted during September 2025 must be deposited by 7 October 2025. For withholding tax on payments to non-residents, this includes any management fees, royalties, or technical service fees paid to the parent company.

Penalties

Late filing of quarterly TDS returns attracts INR 200 per day under Section 234E, capped at the total TDS amount. Section 271H imposes an additional penalty of INR 10,000 to INR 1,00,000. Late deposit of TDS attracts interest at 1.5% per month.

DIR-3 KYC — Due 31 October

Every director holding a Director Identification Number (DIN) must complete annual KYC by filing DIR-3 KYC. For 2025, the MCA extended the deadline to 31 October 2025.

Who Must File

All directors — including foreign nationals holding a DIN for Indian company directorships — must file DIR-3 KYC. This applies to every person who has been allotted a DIN, even if they have resigned or if the company is dormant.

What Is Required

• DIR-3 KYC (e-form): Full form with personal details, address proof, and digital signature certificate — required for first-time filers or those updating details
• DIR-3 KYC-WEB: Simplified web-based verification for directors with no changes — just confirms existing details are accurate

Penalty

Non-filing of DIR-3 KYC results in DIN deactivation and a penalty of INR 5,000 to reactivate. A deactivated DIN prevents the director from signing any e-form or conducting any MCA compliance activity, effectively paralysing company operations. For companies with a single resident director, this is a critical risk.

ROC Filings — AOC-4 and MSME-1

Form AOC-4 (Financial Statements) — Due 30 October

Companies must file their audited financial statements for FY 2024-25 with the Registrar of Companies using Form AOC-4 within 30 days of the Annual General Meeting. If the AGM was held on 30 September 2025 (the standard deadline), AOC-4 is due by 30 October 2025.

For FY 2024-25, the MCA has extended the filing deadline for AOC-4 and related forms to 31 December 2025 to accommodate the transition to MCA-21 Version 3. However, companies should not rely on this extension as a planning assumption — file as early as possible to avoid last-minute portal congestion.

Form MSME-1 — Due 31 October

Companies that have outstanding dues to Micro, Small, or Medium Enterprises exceeding 45 days must file Form MSME-1 (half-yearly return) by 31 October 2025 for the April-September 2025 period. This filing was introduced to protect MSME vendors and carries reputational risk beyond the monetary penalty.

LLP Form 8 — Due 30 October

LLPs must file their Statement of Account and Solvency in Form 8 within 30 days of completing six months of the financial year. For FY 2024-25, the due date is 30 October 2025.

GST Compliance in October 2025

Monthly GST filings continue without interruption alongside the avalanche of annual compliance:

Monthly Filings

Quarterly Filings

• CMP-08: Composition scheme taxpayers must file their quarterly challan for July-September by 18 October
• ITC-04: Job work return for April-September 2025 is due by 25 October

Penalty Reminder

Late GSTR-3B attracts INR 50 per day (INR 25 CGST + INR 25 SGST) for returns with tax liability, plus 18% interest per annum on outstanding tax. With October already stretched thin with annual filings, ensure GST returns are filed early in the month.

PF and ESI Compliance in October 2025

EPF/ESI Contributions — Due 15 October

Monthly EPF and ESI contributions for September 2025 must be deposited by 15 October 2025. The employer EPF contribution is 12% of basic salary, and ESI contribution is 3.25% for employers and 0.75% for employees on wages up to INR 21,000 per month.

FEMA Compliance Actions for October

While October does not carry a specific FEMA deadline, two important actions should be on your radar:

Revised FLA Return Follow-Up

If you filed the FLA Return in July based on unaudited accounts and your audited figures differ materially, the revised FLA Return was due by 30 September. If you missed this deadline, follow up with the RBI immediately — late FLA filing attracts a flat penalty of INR 7,500 but can also draw RBI scrutiny.

FC-GPR Year-End Review

Review all share allotments to foreign investors during H1 (April-September 2025). Ensure all FC-GPR filings are complete and filed within the 30-day window. Any pending FC-GPR filings should be completed before the year-end rush.

Practical Compliance Checklist for October 2025

Week 1 (1-7 October)

• Deposit TDS deducted in September by 7 October
• Finalize tax audit report with statutory auditor
• Review transfer pricing documentation for completeness

Week 2 (8-15 October)

• File GSTR-7/GSTR-8 by 10 October
• File GSTR-1 by 11 October
• Deposit EPF and ESI contributions by 15 October
• Complete DIR-3 KYC filing

Week 3 (16-25 October)

• File GSTR-3B by 20 October
• File CMP-08 by 18 October (composition taxpayers)
• File ITC-04 by 25 October (job work returns)

Week 4 (26-31 October)

• File AOC-4 financial statements by 30 October
• File LLP Form 8 by 30 October
• File tax audit report (Form 3CA/3CD) by 31 October
• File Form 3CEB (transfer pricing report) by 31 October
• File ITR-6 by 31 October (non-TP cases) — TP cases get until 30 November
• File Q2 TDS returns (Forms 24Q, 26Q, 27Q) by 31 October
• File Form MSME-1 by 31 October

Common Pitfalls for Foreign-Owned Companies in October

October's compressed timeline creates specific risks for foreign-owned subsidiaries:

Delayed Transfer Pricing Documentation

Many companies treat transfer pricing documentation as a year-end exercise rather than a continuous process. By October, compiling contemporaneous documentation for 12 months of inter-company transactions becomes a scramble. Best practice is to maintain rolling documentation — updating benchmarking analyses quarterly and keeping transaction logs current throughout the year. The 2% penalty on transaction value for incomplete documentation can be devastating for companies with large inter-company flows.

Section 115BAA Election Timing

Companies that want to switch to the concessional 22% tax rate must file Form 10-IC before the ITR due date. Some companies discover the benefit of Section 115BAA only during October tax planning and rush the election. However, the decision requires careful analysis because it is irrevocable — accumulated MAT credits are forfeited, and deductions under Sections 80IA, 80IAB, 80IAC, and 80IB become unavailable. Run the numbers in September, not October.

DIR-3 KYC for Foreign Directors

Foreign national directors often delay DIR-3 KYC because they need to provide address proof and identity documents from their home country, obtain a digital signature certificate, and coordinate with the Indian company secretary for filing. This process can take two to three weeks. Foreign directors should begin KYC preparation by early October at the latest. A deactivated DIN for the sole resident director can halt all MCA filings for the company.

Portal Congestion

Both the Income Tax e-filing portal and the MCA portal experience severe congestion in the last week of October as millions of companies attempt to file simultaneously. Portal crashes and timeout errors are common. File all October returns by the 25th to avoid last-day technical failures.

Overlooking Form MSME-1

Companies that owe money to MSME vendors for more than 45 days must disclose this in Form MSME-1. Many foreign-owned subsidiaries are unaware of this requirement because it was introduced relatively recently and the MSME status of vendors is not always clearly documented. Conduct a vendor-level review before 31 October to identify any outstanding MSME dues exceeding the 45-day limit. The penalty for the company is INR 20,000, plus up to INR 1,00,000 for officers in default — but the reputational risk with MSME vendors and regulators extends further.

Key Takeaways

• October is India's most demanding compliance month — tax audit, transfer pricing report, ITR filing, DIR-3 KYC, AOC-4, and Q2 TDS returns all converge in a 31-day window requiring coordinated effort from your CA, CS, and TP advisor
• Tax audit (Form 3CA/3CD) and Form 3CEB are both due 31 October — penalties are INR 1,50,000 for the tax audit and INR 1,00,000 for the transfer pricing report, but the real risk is delayed ITR filing which triggers interest and loss of carry-forward
• ITR deadline splits by category: 31 October for audit cases without TP, 30 November for companies with international transactions requiring Form 3CEB
• DIR-3 KYC by 31 October is non-negotiable — non-filing deactivates the director's DIN, paralysing all MCA compliance until reactivated with a INR 5,000 fee
• Start October preparation in September — with 15+ major deadlines, last-minute filing attempts will overwhelm portal capacity and professional bandwidth

For comprehensive compliance management across all annual and monthly deadlines, explore our annual compliance service. Companies with transfer pricing obligations can benefit from our dedicated transfer pricing advisory, and for FEMA-related filings, see our FEMA and RBI compliance service.