A scheme has been launched to compensate victims of the Post Office Capture IT scandal that saw former subpostmasters forced to repay shortfalls.

The Government said those affected can now apply for redress, with those found to be eligible set to receive £10,000 immediately and final awards potentially reaching up to £300,000 after full assessment by an independent panel, or more in certain cases.

The Capture system pre-dated the now infamous Horizon software, which has been responsible for around 1,000 wrongful convictions.

An independent report into faulty accounting system Capture was commissioned last year after subpostmasters said they had suffered similar problems to those faced by the Horizon victims.

The report by forensic accountants Kroll Associates, which concluded there was a reasonable likelihood that Capture – in use at Post Office branches between 1992 and 2000 – created financial shortfalls for postmasters.

In some cases, postmasters resorted to using their own savings to make up the difference.

The scheme will be not be open to postmasters who have criminal convictions related to Capture.

Those who were given criminal convictions must instead go through the Criminal Cases Review Commission, or its Scottish equivalent.

The Government has said it will “ensure that appropriate redress is given” to those where convictions are overturned by the courts.

The compensation scheme will be tested for the first 150 claimants before being rolled out more widely.

Post Office minister Blair McDougall said: “After over two decades of fighting for justice, postmasters and their families will finally receive recognition and recompense for the lives and livelihoods that Capture destroyed.

“I’d like to thank all of those victims who have helped us to design this scheme, allowing us to deliver on our promise of providing redress today.

“We can’t make up for everything they have lost, but today we begin restoring some of the dignity so cruelly taken away by this scandal.”

The Government said the scheme has been designed “hand in hand” with victims, while also taking lessons into account from redress schemes for the Horizon IT Scandal.

So far, more than £1.2 billion has been paid out in compensation to more than 9,000 victims of the Horizon scandal, it added.

New Delhi: The Central Board of Direct Taxes (CBDT) has extended the due dates for filing audit reports and Income Tax Returns (ITR) for the Assessment Year 2025–26, giving major relief to businesses, professionals, and firms whose accounts require auditing.

Earlier, the deadline to submit tax audit reports was October 31, 2025, and the corresponding ITR filing deadline was also October 31, 2025. However, considering technical delays and representations from taxpayers and professionals, the CBDT has now extended both these dates.

As per the latest circular, taxpayers who are required to get their accounts audited under the Income Tax Act, 1961 can now file their audit reports by November 10, 2025, instead of October 31. Consequently, the due date for filing the ITR for such taxpayers has also been pushed to December 10, 2025.

This extension applies to companies, Limited Liability Partnerships (LLPs), and other entities whose books of accounts need to be audited. It also benefits professionals and small businesses who were facing difficulties due to late availability of ITR forms and software utilities.

The government’s decision aims to provide adequate time for taxpayers and auditors to ensure accuracy and compliance while reducing last-minute rush and filing errors. The extension also reflects the government’s understanding of the challenges faced by the accounting community, especially with overlapping deadlines for GST audits and other financial filings.

Tax experts advise taxpayers to make the most of this extension by completing audits early and verifying data consistency between GST, TDS, and income tax returns to avoid discrepancies during assessment.

In summary, the new deadlines are:

Audit Report Filing: November 10, 2025

ITR Filing for Audited Taxpayers: December 10, 2025

Missing these dates could still attract penalties and interest, so taxpayers are urged to file well before the final deadline.

Last Updated:October 29, 2025, 18:45 IST

ITR Audit Due Date Extension: The revised deadlines for submitting audit reports and ITR are November 10 and December 10, respectively.

The income tax department on September 25 had extended the deadline to submit tax audit reports (TARs) from September 30 till October 31, 2025.

ITR Audit Due Date Extension: The Central Board of Direct Taxes (CBDT) on October 29 extended the deadline for filing income tax returns (ITRs) and audit reports for the assessment year 2025-26, providing relief to taxpayers and professionals. The revised deadlines for submitting audit reports and ITR are November 10 and December 10, respectively.

Before this extension, taxpayers whose accounts need to be audited — such as companies, proprietorships, and working partners in firms — had time till October 31, 2025, to file their income tax returns (ITR) for the financial year 2024-25 (assessment year 2025-26).

In a statement issued on Wednesday, the CBDT announced that the due date for furnishing the Return of Income under sub-section (1) of Section 139 of the Income-tax Act, 1961 — originally set for October 31, 2025 — has been extended to December 10, 2025. This extension applies to assessees covered under clause (a) of Explanation 2 to sub-section (1) of Section 139, which typically includes companies, firms, and individuals whose accounts are required to be audited.

Additionally, the Board has extended the ‘specified date’ for furnishing the tax audit report under various provisions of the Income-tax Act for the Previous Year 2024–25 to November 10, 2025.

The extension comes after Himachal Pradesh and Punjab & Haryana High Courts passed the order to extend the last date for filing the audit returns from October 31, 2025, to November 30, 2025. The orders came following the decision of the Gujarat High Court to extend the deadline for tax audit cases to November 30.

“The Central Board of Direct Taxes (CBDT) has decided to extend the due date of furnishing of Return of Income under sub-Section (1) of Section 139 of the Act for the Assessment Year 2025-26, which is 31st October 2025 in the case of assessees referred in clause (a) of Explanation 2 to sub-Section (1) of Section 139 of the Act, to 10th December 2025. The ‘specified date’ of furnishing of the report of audit under the provisions of the Income-tax Act, 1961, for the Previous Year 2024-25 (Assessment Year 2025-26) is further extended to 10th November 2025,” the CBDT said in a statement.

The income tax department on September 25 had extended the deadline to submit tax audit reports (TARs) from September 30 till October 31, 2025.

The decision also comes after the CBDT received multiple representations from professional associations, including various chartered accountant bodies, highlighting difficulties faced by taxpayers and practitioners in completing audit reports within the original timeline.

Mohammad Haris

Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h…Read More

Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h… Read More

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