Chapter XIX - Collection and Recovery of Tax
Section 428
Section 428: fee for default in furnishing return of income, audited accounts and reports
Section 428 covers four fee categories: missing the section 263(1) return due date, furnishing a revised return under section 263(5) beyond nine months from the tax-year end, failure concerning the section 63 audit and its report, and failure to furnish the section 172 accountant’s report. Return-fee bands depend on total income; the two professional-report fee bands depend on delay.
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Need advice on Section 428?
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
Without prejudice to the provisions of this Act, where any person— (a) required to furnish a return of income under section 263, fails to do so within the due date, as specified under sub-section (1) of the said section, he shall be liable to pay by way of fee,— (i) a sum of ₹1000, if the total income of such person does not exceed ₹500000; and (ii) a sum of ₹5000, in any other case; (b) furnishes a return of income under section 263(5) beyond nine months from the end of relevant tax year, he shall be liable to pay by way of fee,— (i) a sum of ₹1000, if the total income of such person does not exceed ₹500000; and (ii) a sum of ₹5000, in any other case; (c) fails to get his accounts audited for any tax year or years and furnish the report of such audit as required under section 63, he shall be liable to pay by way of fee,— (i) a sum of ₹75000 for a delay up to one month for which such failure continues; and (ii) a sum of ₹150000 thereafter; (d) fails to furnish a report from an accountant as required by section 172, he shall be liable to pay by way of fee,— (i) a sum of ₹50000 for a delay up to one month for which such failure continues; and (ii) a sum of ₹100000 thereafter.
Introduction
Section 428 is an amended fee provision covering four different failures. First identify which return or professional report obligation applies; the return fee depends on total income, while the audit and accountant-report fees depend on the length of delay.
Key takeaways
Return fee bands
The amended section states ₹1,000 where total income does not exceed ₹5,00,000 and ₹5,000 otherwise for the named return defaults.
Other filings
It also provides separate fees for delay in a section 63 audit report and a section 172 accountant report.
Use amended text
The Finance Act, 2026 substituted this section; the earlier short return-only wording is an amendment footnote.
Fee for late filing of return of income
"Without prejudice to the provisions of this Act, where any person-- (a) required to furnish a return of income under section 263, fails to do so within the due date, as specified under sub-section (1) of the said section, he shall be liable to pay by way of fee-- (i) a sum of ₹1000, if the total income of such person does not exceed ₹500000; and (ii) a sum of ₹5000, in any other case."
Fee for a revised return beyond nine months from the tax-year end
"(b) furnishes a return of income under section 263(5) beyond nine months from the end of relevant tax year, he shall be liable to pay by way of fee-- (i) a sum of ₹1000, if the total income of such person does not exceed ₹500000; and (ii) a sum of ₹5000, in any other case."
Fee for failing to get accounts audited under Section 63
"(c) fails to get his accounts audited for any tax year or years and furnish the report of such audit as required under section 63, he shall be liable to pay by way of fee-- (i) a sum of ₹75000 for a delay up to one month for which such failure continues; and (ii) a sum of ₹150000 thereafter."
Fee for failing to furnish an accountant's report under Section 172
"(d) fails to furnish a report from an accountant as required by section 172, he shall be liable to pay by way of fee-- (i) a sum of ₹50000 for a delay up to one month for which such failure continues; and (ii) a sum of ₹100000 thereafter."
Fee summary
| Default | Basis for fee band | Fee |
|---|---|---|
| Return not furnished by the section 263(1) due date | Total income up to ₹5 lakh / above ₹5 lakh | ₹1,000 / ₹5,000 |
| Revised return under section 263(5) beyond nine months from tax-year end | Total income up to ₹5 lakh / above ₹5 lakh | ₹1,000 / ₹5,000 |
| Failure concerning section 63 audit and report | Delay up to one month / thereafter | ₹75,000 / ₹1,50,000 |
| Section 172 accountant’s report not furnished | Delay up to one month / thereafter | ₹50,000 / ₹1,00,000 |
Step-by-step flow for applying the fee under Section 428
- 1
Which default has occurred?
Section 428 applies "without prejudice to the provisions of this Act", so the fee does not displace any other consequence the Act provides. Identify the clause that fits the facts.
- Return under section 263 not furnished within the due date in section 263(1) (clause (a)): Go to step 2.
- Revised return under section 263(5) furnished beyond nine months from the end of the relevant tax year (clause (b)): Go to step 2.
- Accounts not audited and audit report not furnished as required by section 63 (clause (c)): Go to step 3.
- Accountant's report required by section 172 not furnished (clause (d)): Go to step 4.
- 2
Return defaults: does the person's total income exceed ₹5,00,000?
Clauses (a) and (b) use the same two-level fee.
- No (total income does not exceed ₹5,00,000): Fee of ₹1,000.
- Yes (any other case): Fee of ₹5,000.
- 3
Audit default under section 63: how long has the failure continued?
- Delay up to one month: Fee of ₹75,000.
- Failure continues beyond one month: Fee of ₹1,50,000 ("thereafter"). Section 428 does not state whether this is in place of, or in addition to, the first-month sum.
- 4
Accountant's report default under section 172: how long has the failure continued?
- Delay up to one month: Fee of ₹50,000.
- Failure continues beyond one month: Fee of ₹1,00,000 ("thereafter"). Section 428 does not state whether this is in place of, or in addition to, the first-month sum.
Practical checklist
Do
- Record the section 263(1) due date and actual filing date, and check separately whether a section 263(5) return was filed more than nine months after the tax year ended.
- For a return fee, check total income against the ₹5,00,000 threshold; for section 63 audit or section 172 report defaults, measure whether the delay continued beyond one month.
- Retain return acknowledgments, audit/report upload receipts and the demand computation so each alleged default can be checked against the correct clause.
Avoid
- Do not use the old return-only wording appearing in the Finance Act, 2026 amendment footnote as the current section.
- Do not apply the return income threshold to the separate audit and accountant-report fees.
Illustrative example
Worked example: a late original return and a late revised return
Hypothetical facts (illustration only, not a real taxpayer): Ms. Rao, an individual, has an assumed total income of ₹6,40,000 for the tax year 2026-27 (1 April 2026 to 31 March 2027). She furnishes her return after the due date specified in section 263(1). Later she furnishes a revised return under section 263(5) in February 2028.
Clause (a) - late original return
The return was not furnished within the due date in section 263(1). Her total income of ₹6,40,000 exceeds ₹5,00,000, so the fee is ₹5,000 under Section 428(a)(ii).
Clause (b) - timing of the revised return
Nine months from the end of the tax year (31 March 2027) ends on 31 December 2027. The revised return in February 2028 is beyond that point.
Clause (b) - fee
Clause (b) is a separate default. On the same total income the fee is ₹5,000 under Section 428(b)(ii).
Lower-income comparison
If her total income had been an assumed ₹4,80,000, which does not exceed ₹5,00,000, each fee would be ₹1,000 under sub-clause (i).
Outcome
- On these assumed facts the fees are ₹5,000 under clause (a) and ₹5,000 under clause (b), i.e. ₹10,000 in total.
- The fee is without prejudice to other provisions of the Act; Section 428 itself does not state the due date, which comes from section 263(1).
Glossary
- Revised return
- A return under section 263(5) correcting an omission or wrong statement. Section 428(b) addresses furnishing it beyond nine months from the end of the relevant tax year.
- Accountant’s report
- The report required by section 172, addressed separately from a section 63 audit report.
Frequently asked questions
What is the late fee for missing the return filing due date under Section 428?
₹1,000 if total income does not exceed ₹5,00,000, and ₹5,000 in any other case, for failing to file the Section 263 return by the due date under Section 263(1).
Does a revised return filed beyond nine months attract a fee?
Clause (b) applies to a revised return under section 263(5) furnished beyond nine months from the end of the relevant tax year. The fee is ₹1,000 where total income does not exceed ₹5,00,000 and ₹5,000 otherwise. This clause concerns revised returns, not the separate belated-return provision.
What is the fee for not getting accounts audited under Section 63?
₹75,000 for a delay of up to one month, and ₹1,50,000 thereafter, for failing to get accounts audited for any tax year and furnish the audit report as required under Section 63.
What is the fee for not furnishing an accountant's report under Section 172?
₹50,000 for a delay of up to one month, and ₹1,00,000 thereafter.
Need help applying this provision to your situation?
Calculate your late fee for return, audit or accountant's report delayLast updated 10 October 2026