Section 428 Income Tax Act 2025 – Late Filing Fee Explained

Section 428 of the Income Tax Act 2025 deals with the levy of fees in certain cases. Unlike the Income Tax Act, 1961, where the provisions were scattered, this section consolidates four major late fee provisions under Section 428.

Fees Covered under Section 428

The following late fee provisions are covered under Section 428 of the Income Tax Act, 2025.

• Delay in filing return on income
• Revised returns filed during the last three months of the relevant assessment year
• Non-furnishing of tax audit report within applicable due dates.
• Non-furnishing of transfer pricing report within applicable due dates.

What is Section 428 of the Income Tax Act 2025?

Section 428 deals with fees for certain cases. This is a consolidated section dealing with the fees for delay in furnishing ITR, tax audit report, transfer pricing report and filing revised returns after 31st December of the succeeding tax year. These provisions are covered under different sections of the Income Tax Act, 1961, as mentioned in the table below.

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

When the assessee misses the due date for filing their return, along with interest and other consequences, they are liable to pay a late filing fee. Parallel provisions related to late filing fees on ITR are covered under section 234F of the Income Tax Act, 1961. 

The amount of late fees payable depends on the level of taxable income, and the following table lists the late fee payable for different groups of income.

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

After filing the returns, if the assessee discovers a mistake, an omitted income or deduction, any excess exemption or deduction claim made, non-disclosure of assets, or any other errors, they can revise the return within 31st March of the succeeding tax year. For Tax year 2026-27, revised returns need to be filed within 31st March 2028.

However, the assessee is liable to pay a fee when he files the revised return after 31st December of the next tax year. For example, Mr A misses his deduction claim of ₹1.5 lakh for tax year 2026-27, and discovers the same on 5th January, 2028. He can claim the deduction through the revised return, but is liable to pay a fee. 

The late fee liability for different levels of income is provided in the table below.

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

Tax audit liability arises when the assesse’s business turnover, receipts and expenses cross the prescribed threshold limits. Every business that is subject to tax audit is liable to furnish a tax audit report from an accountant as prescribed under the provisions of this Act, thirty days before the due date of filing the return on income. The following table shows the tax audit due dates for different kinds of assessees.

If the assessee does not furnish the tax audit report within the specified due dates, fees are applicable as follows.

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

When an assessee has entered into an international transaction or specified domestic transaction, they are liable to provide a report furnished by a practising Chartered Accountant on such transactions. This is popularly called a transfer pricing report. An assessee should submit the report under section 172 by 31st October of the next tax year. 

Non-furnishing of transfer pricing report attracts fees under section 428 as follows:

Who is Exempt from the Fee Under Section 428?

The following categories of taxpayers are not required to pay fees under Section 428.

1. Section 428(1) - When the taxable income has not crossed the basic exemption limits, the assessee is not required to file the return of income. Therefore, in such circumstances, he is not required to pay fees under section 428(1) of the Act.
2. Section 428(2) - If you file the revised returns within 9 months of the assessment year, you are not required to pay the prescribed fees.

Section 428 vs Section 234F of Income Tax Act 1961 – Key Differences

Final Word

Section 428 encompasses the additional levy in cases of missing the compliance due dates. With fees for various compliance gaps covered under a single section, this section holds practical significance.