Income Tax Act 2025: Section 427 for Tax Year 2026-27

Fee for default in furnishing statements

[Section-427 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]

Section 427(1) of Income Tax Act 2025

427(1) Without prejudice to the provisions of this Act, where a person fails to deliver or cause to be delivered a statement within the time prescribed in section 393(3)(b), he shall be liable to pay, by way of fee, a sum of two hundred rupees for every day during which the failure continues.

Section 427(2) of Income Tax Act 2025

427(2) The amount of fee referred to in sub-section (1) shall,––

• 427(2)(a) not exceed the amount of tax deductible or collectible; and
• 427(2)(b) be paid before delivering or causing to be delivered the statement, as per sub-section (1).

FAQs on Section 427 of Income Tax Act 2025

What is the fee for default in furnishing a statement under Section 427(1)?
A person who fails to deliver a statement within the time prescribed under Section 393(3)(b) shall be liable to pay a fee of ₹200 for each day the failure continues.

Is this fee in addition to other penalties or consequences under the Act?
Yes, the fee is imposed without prejudice to other provisions of the Income Tax Act, 2025.

What is the maximum amount of fee that can be charged under Section 427(1)?
As per Section 427(2)(a), the fee shall not exceed the amount of tax deductible or collectible.

When must the fee be paid by the defaulter?
According to Section 427(2)(b), the fee must be paid before delivering or causing to be delivered the delayed statement.

Does the fee continue to accumulate until the statement is filed?
Yes, ₹200 accrues for each day of default until the statement is delivered, subject to the cap on total fee.

Who is liable to pay the fee under Section 427?
Any person responsible for delivering a statement under Section 393(3)(b) who fails to do so on time is liable.

Can the fee be waived under any circumstances?
There is no provision under Section 427 for waiver of the fee; it is mandatory unless otherwise provided in other sections or rules.

Is interest applicable in addition to the fee under Section 427?
Section 427 only prescribes a fee, not interest. Interest, if any, would be governed by other relevant provisions of the Act.

Does filing a nil statement late attract the ₹200 per day fee?
Yes, even if the statement is nil, failure to deliver it within the prescribed time attracts the fee, subject to the maximum of tax deductible or collectible (which could be zero).

Is this fee applicable for both tax deduction and tax collection defaults?
Yes, the provision applies to defaults related to both tax deductible and tax collectible statements under Section 393(3)(b).