Section 428 Income Tax Act 2025 – Late Filing Fee Explained

Section 428 is the new late fee provision under the Income Tax Act 2025. It replaces the old Section 234F of the Income Tax Act 1961, but it goes much further. While Section 234F only dealt with late ITR filing, Section 428 covers four distinct types of compliance defaults — from missing your ITR deadline to delaying your tax audit report to failing to submit an accountant's report for international transactions. These provisions are applicable with effect from 1st April 2026.

What is Section 428 of the Income Tax Act 2025?

Section 428 falls under Chapter XIX, Part F (Levy of Fee in Certain Cases) of the Income Tax Act 2025. It addresses the late fees applicable to delays in filing returns and audit reports. This fee is separate from any tax due and separate from any penalties that may also apply. Though it replaces section 234F of the Income Tax Act, 1961. A brief explanation of the provisions is tabulated below.

Section 428(a): Fee for Not Filing ITR by the Due Date

Under Section 428(a), if you are required to file a return of income under Section 263 of the Income Tax Act 2025 and you miss the due date specified in Section 263(1), you must pay a fee.

Fee Structure Under Section 428(a)

 Note: 'Total income' for this purpose is your total taxable income, i.e, income after all the applicable deductions.

Section 428(b): Fee for Filing Revised Return After 9 Months

• Section 428(b) deals with the late fee for a revised return. If you file a revised return after 9 months from the end of the relevant tax year, you are liable for late fees for up to Rs. 5,000. 
• As per the Finance Act 2026 amendment, the due date for filing a revised return has been further extended to 3 months, until 31st March of the next tax year.
• Therefore, you can file the revised return within 31st December of the next tax year without any late fee.
• From Jan-Mar of the next tax year, late fee is applicable for revised returns as follows:

 This change in revised return due date and late fee is applicable with effect from FY 2025-26, through amendments under the Income Tax Act, 1961. However, the provisions of section 428 apply with effect from tax year 2026-27.

Section 428(c): Fee for Delay in Tax Audit Report Under Section 63

If your business turnover crosses certain threshold limits, then you are liable for tax audit under section 63 of the Income Tax Act, 2025. If there is a discrepancy in this compliance, late fee is attracted. The following table shows the late fee applicable under section 428(c).

Fee Structure Under Section 428©

 The due date for furnishing the tax audit report under Section 63 is one month before the due date for filing the ITR under Section 263(1). So:

• If your ITR due date is 31 October 2027, the audit report must be submitted by 30 September 2027.
• If your ITR due date is 30 November 2027 (for transfer pricing cases), the audit report must be submitted by 31 October 2027.

Note: This was levied as a penalty under the Income Tax Act, 1961, under section 271B. Unlike the provisions of the 1961 Act, section 428 late fee is mandatory in nature. The assessing officer cannot dismiss the late fees, even if the grounds for such delay is reasonable.

Example:

Mr. A is required to get his accounts audited for Tax Year 2026-27. His audit report due date is 30 September 2027 and his ITR due date is 31 October 2027.

Section 428(d): Fee for Not Furnishing Accountant's Report Under Section 172

Section 172 of the Income Tax Act 2025 requires an assessee who enters into international transactions or specified domestic transactions (i.e., transfer pricing cases) to furnish a report from a Chartered Accountant. Failure to submit this report now triggers a mandatory fee under Section 428(d).

Under the old Act, failure to furnish this report attracted a penalty under Section 271BA / Section 92E. Under the new Act, this is also converted to a fee structure.

Fee Structure Under Section 428(d)

Who is Exempt from the Fee Under Section 428?

Not everyone who misses a deadline will be liable to pay the fee under Section 428(a). Here are the key exemptions:

• If you are not required to file an ITR at all — i.e., your income is below the threshold and you do not fall under any of the mandatory filing conditions — Section 428 simply does not apply.
• For Section 428(b), no fee applies if the revised return is filed within 9 months from the end of the tax year.
• For Section 428(c) and (d), there is no income-based exemption — the fee applies regardless of the taxable income.

Section 428 v/s Section 234F of the Income Tax Act 1961 – Key Differences

Section 428 of the Income Tax Act 2025 is the direct successor of Section 234F of the Income Tax Act 1961.Here's a comparison:

Conclusion

Section 428 of the Income Tax Act 2025 is one of the most practically important provisions for every taxpayer and tax professional in India. Whether you're a salaried individual with a 31 July deadline or a company with transfer pricing obligations due by 30 November, this section defines the financial cost of missing your compliance timelines.