Chapter XVIII - Appeals, Revisions and Alternate Dispute Resolutions
Section 358
Section 358: form of appeal, fees and limitation period
Section 358 lays down the procedural requirements for filing an appeal before the Joint Commissioner (Appeals) or the Commissioner (Appeals) under Chapter XVIII: the prescribed form, the graded appeal fee based on assessed income, the 30-day time limit, and the condition that tax on the returned income (or advance tax, if no return was filed) must be paid before the appeal is admitted.
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Need advice on Section 358?
This article is for general information. Refer to the Income-tax Act, 2025 as amended by the Finance Act, 2026 and the Taxation and Other Laws (Amendment) Act, 2026 for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
(1) Every appeal under this Chapter shall be in such form and verified in such manner, as may be prescribed.
(2) An appeal referred to in sub-section (1), made to the Commissioner (Appeals) or to the Joint Commissioner (Appeals), shall be accompanied by a fee of—
(a) ₹ 250, where the total income of the assessee as computed by the Assessing Officer in the case to which the appeal relates is ₹ 100000 or less;
(b) ₹ 500, where the total income of the assessee, computed as aforesaid, in the case to which the appeal relates is more than ₹ 100000 but not more than ₹ 200000;
(c) ₹ 1000, where the total income of the assessee, computed as aforesaid, in the case to which the appeal relates is more than ₹ 200000;
(d) ₹ 250, where the subject matter of an appeal is not covered under clauses (a), (b) and (c).
(3) The appeal shall be presented within thirty days,––
(a) from the date of service of the notice of demand where the appeal relates to any assessment or penalty; or
(b) in any other case, from the date on which intimation of the order sought to be appealed against is served.
(4) For the purposes of sub-section (3)(a), where an application made under section 440(1) is rejected, the period beginning from the date on which the application is made, to the date on which the order rejecting the application is served on the assessee, shall be excluded.
(5) The Joint Commissioner (Appeals) or the Commissioner (Appeals) may admit an appeal after the expiration of the said period if he is satisfied that the appellant had sufficient cause for not presenting it within that period.
(6) No appeal under this Chapter shall be admitted unless at the time of filing of the appeal,—
(a) where a return has been filed by the assessee, the assessee has paid the tax due on the income returned by him; or
(b) where no return has been filed by the assessee, the assessee has paid an amount equal to the amount of advance tax which was payable by him.
(7) The Joint Commissioner (Appeals) or the Commissioner (Appeals) may, for the purposes of sub-section (6)(b) and on an application made by the appellant in this behalf, for reasons to be recorded in writing, exempt him from the operation of the provisions of that sub-section.
Introduction
Section 358 sets the form, verification, fee, filing period and admission conditions for appeals under this Chapter.
The ordinary filing window is 30 days from the stated service event, with a sufficient-cause route for late admission; the appellant must also satisfy the tax-payment condition or its stated exception.
Key takeaways
Form, verification and fee
An appeal under this Chapter uses the prescribed form and verification and carries the fee applicable to the assessed-income band or other subject matter.
Thirty-day filing window
The appeal is generally presented within thirty days from service of the relevant demand notice or appealed-order intimation.
Admission depends on tax payment
Returned-income tax, or the required advance-tax amount if no return was filed, must generally be paid before admission, subject to the stated waiver route.
Form and fee
Every appeal under this Chapter must be in the prescribed form, verified in the prescribed manner, and accompanied by a fee as follows:
| Total income as computed by the Assessing Officer | Appeal fee |
|---|---|
| ₹1,00,000 or less | ₹250 |
| More than ₹1,00,000 but not more than ₹2,00,000 | ₹500 |
| More than ₹2,00,000 | ₹1,000 |
| Subject matter not covered by the above (i.e. not an income-based case) | ₹250 |
Time limit for filing the appeal
The appeal must be presented within thirty days: from the date of service of the notice of demand, where the appeal relates to an assessment or penalty; or, in any other case, from the date on which the intimation of the order being appealed against is served.
Where an application under section 440(1) has been made and is rejected, the period from the date the application was made to the date the rejection order is served on the assessee is excluded while computing this 30-day limit.
The Joint Commissioner (Appeals) or Commissioner (Appeals) may admit a late appeal if satisfied that the appellant had sufficient cause for not presenting it within the 30-day period.
Condition for admission of appeal - tax must be paid
No appeal under this Chapter is admitted unless, at the time of filing: the assessee has paid the tax due on the income returned, where a return has been filed; or, where no return has been filed, the assessee has paid an amount equal to the advance tax that was payable.
The Joint Commissioner (Appeals) or Commissioner (Appeals) may, on the appellant's application and for reasons recorded in writing, exempt the appellant from the requirement to pay advance-tax-equivalent where no return was filed.
Step-by-step flow for filing an appeal under Section 358
- 1
Prepare the appeal in the prescribed form
Section 358(1) leaves the form and the manner of verification to be prescribed. The section itself does not specify the form.
- 2
Work out the fee
Section 358(2) fixes the fee by the total income computed by the Assessing Officer: ₹250 if it is ₹1,00,000 or less; ₹500 if it is more than ₹1,00,000 but not more than ₹2,00,000; ₹1,000 if it is more than ₹2,00,000. Where the appeal is not covered by these clauses, the fee is ₹250.
- 3
Count the thirty days
Under Section 358(3), the period runs from the date of service of the notice of demand for an appeal on assessment or penalty, and in any other case from the date the intimation of the order is served. For an assessment or penalty appeal, the period during which an application under section 440(1) was pending and later rejected is excluded (Section 358(4)).
- 4
Has the thirty-day period expired?
- Yes: The Joint Commissioner (Appeals) or Commissioner (Appeals) may still admit the appeal if satisfied that the appellant had sufficient cause for the delay (Section 358(5)). Go to the next step.
- No: Go to the next step.
- 5
Has the tax condition in Section 358(6) been met?
If a return was filed, the tax due on the returned income must be paid. If no return was filed, an amount equal to the advance tax payable must be paid. In the no-return case, the appellate authority may exempt the appellant on an application, for reasons recorded in writing (Section 358(7)).
- No, and no exemption is granted: The appeal is not admitted.
- Yes, or exempted under Section 358(7): The appeal can be admitted.
Practical checklist
Do
- Calculate 30 days from service of the demand notice or appealable order, as applicable.
- Pay the fee that corresponds to the assessed income bracket and keep proof of payment.
- Check the returned-income tax or advance-tax payment condition at filing.
Avoid
- Assume a late appeal is automatically admitted without showing sufficient cause.
Illustrative example
Worked example: fee, time and tax paid before appeal
Hypothetical facts (illustration only, not a real taxpayer): Mr. Das filed his return and paid the tax due on the income he returned. The Assessing Officer computed his total income at ₹1,80,000 and served a notice of demand on 5 January 2027. Mr. Das wants to appeal against the assessment. All figures and dates are assumed.
Fee
₹1,80,000 is more than ₹1,00,000 but not more than ₹2,00,000, so the fee under Section 358(2)(b) is ₹500.
Time limit
The appeal relates to an assessment, so the thirty days run from the date of service of the notice of demand, 5 January 2027 (Section 358(3)(a)).
Tax condition
A return was filed and the tax due on the returned income has been paid, so Section 358(6)(a) is satisfied.
If filed late
If he misses the thirty days, he must show sufficient cause for the delay; admission is then at the discretion of the appellate authority under Section 358(5).
Outcome
- The appeal must be filed in the prescribed form with a fee of ₹500, within thirty days from 5 January 2027.
- Paying the tax due on the returned income is a precondition for admission.
Frequently asked questions
How long do I have to file an appeal before the Commissioner (Appeals)?
Thirty days - from the date of service of the notice of demand for an assessment or penalty appeal, or from the date the intimation of the order is served in other cases. A late appeal can still be admitted if there was sufficient cause for the delay.
What is the appeal fee if my assessed income is more than ₹2,00,000?
₹1,000, under Section 358(2)(c).
Do I have to pay tax before I can file an appeal?
Yes - if you filed a return, you must have paid the tax due on the returned income; if you did not file a return, you must have paid an amount equal to the advance tax payable, unless the appellate authority exempts you from this on a written application with reasons recorded.
What fee applies if the Assessing Officer computed total income of exactly ₹2,00,000?
₹500. Section 358(2)(b) covers total income of more than ₹1,00,000 but not more than ₹2,00,000. The ₹1,000 fee in clause (c) applies only where total income is more than ₹2,00,000.
Need help applying this provision to your situation?
Get help filing your income-tax appealLast updated 9 October 2026