Fee for default in furnishing return of income
[As per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Without prejudice to the provisions of this Act, where, a person required to furnish a return of income under section 263 fails to do so within the time as prescribed in section 263(1) he shall pay, by way of a fee,––
(a) a sum of five thousand rupees, if the total income of such person exceeds five lakh rupees;
(b) a sum not exceeding one thousand rupees in any other case.
FAQs on Section 428 of Income Tax Act 2025
What is the fee for default in furnishing return of income under Section 428?
If a person fails to furnish a return of income within the prescribed time under Section 263(1), a fee is payable under Section 428.
Who is liable to pay the fee under Section 428?
Any person who is required to furnish a return under Section 263 and fails to do so within the specified time is liable to pay the fee under Section 428.
What is the amount of fee payable if the total income exceeds five lakh rupees?
The fee payable is five thousand rupees.
What is the fee payable if the total income does not exceed five lakh rupees?
The fee shall not exceed one thousand rupees.
Is Section 428 applicable even if other penalties apply under the Act?
Yes, Section 428 applies without prejudice to other provisions of the Act, meaning it applies in addition to any other applicable penalties.
From when is Section 428 effective?
Section 428 is effective from 1st April, 2026.
Does Section 428 apply to all categories of taxpayers?
Yes, it applies to any person required to furnish a return under Section 263, regardless of category.
Is the fee under Section 428 mandatory or discretionary?
The fee is mandatory upon failure to file the return within the time limit specified in Section 263(1).
Is there any provision for waiver or reduction of fee under Section 428?
No such provision for waiver or reduction is mentioned in Section 428.
If a person files a belated return, will the fee still apply?
Yes, if the return is not filed within the time prescribed under Section 263(1), the fee under Section 428 becomes payable even if a belated return is filed later.
