Fee for default relating to statement or certificate
[As per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Section 429(1) of Income Tax Act 2025
429(1) Without prejudice to the provisions of this Act, where,—
- 429(1)(a) the research association, University, college or other institution referred to in section 45(3)(a) or the company referred to in section 45(3)(b) fails to deliver or cause to be delivered the documents as prescribed in section 45(4)(a) within the time as prescribed therein or furnish a certificate as prescribed under section 45(4)(a); or
- 429(1)(b) the institution or fund fails to deliver or cause to be delivered a statement within the time as prescribed under section 354(1)(e), or furnish a certificate as prescribed under section 354(1)(f),
it shall be liable to pay, by way of fee, a sum of two hundred rupees for every day during which the failure continues.
Section 429(2) of Income Tax Act 2025
429(2) The amount of fee referred to in sub-section (1) shall,—
- 429(2)(a) not exceed the amount in respect of which the failure referred to therein has occurred;
- 429(2)(b) be paid before delivering or causing to be delivered the statement or before furnishing the certificate referred to in sub-section (1).
FAQs on Section 429 of Income Tax Act 2025
What is Section 429 of the Income Tax Act, 2025 about?
Section 429 provides for the levy of a fee in case of failure by certain institutions or funds to submit prescribed documents, statements, or certificates within the stipulated time.
Who is liable to pay the fee under Section 429(1)(a)?
A research association, University, college, other institution referred in section 45(3)(a), or a company referred in section 45(3)(b), if it fails to deliver the documents or furnish the certificate as required under section 45(4)(a), within the prescribed time.
Who is liable under Section 429(1)(b)?
An institution or fund that fails to submit the statement as required under section 354(1)(e) or furnish the certificate as per section 354(1)(f) within the prescribed time.
What is the amount of fee for default under Section 429?
The fee is ₹200 for every day during which the failure continues.
Is there any cap on the maximum fee that can be levied under Section 429?
Yes, as per Section 429(2)(a), the total fee shall not exceed the amount in respect of which the failure has occurred.
When must the fee be paid under Section 429?
The fee must be paid before delivering or causing to be delivered the statement or before furnishing the certificate, as per Section 429(2)(b).
Does payment of this fee affect other penalties under the Act?
No, this fee is without prejudice to any other provisions of the Income Tax Act, 2025. Other penalties may still apply.
Is the fee under Section 429 applicable automatically on failure?
Yes, the fee is automatically applicable for each day of default as per the law, irrespective of any separate notice or demand.
Does this section apply to individuals?
No, Section 429 specifically applies to certain institutions, companies, and funds as specified under sections 45 and 354.
From when is Section 429 applicable?
Section 429 is applicable with effect from 1st April, 2026.
