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Section 429 Income Tax Act 2025: When Is a Rs. 200 Daily Fee Payable?

Section 429 imposes a fee for failure by specified research bodies, institutions, companies, funds and other covered entities to furnish prescribed statements, documents or certificates on time. This article explains who is covered, how the fee is calculated and when it must be paid.

Current law: Section 429 of the Income-tax Act, 2025 (effective from 1 April 2026), read with Sections 45 and 354. The corresponding provision under the Income-tax Act, 1961 was Section 234G. Check the prescribed rules and deadlines applicable to the particular filing.

Who must pay a fee under Section 429?

Section 429 is not a general late-return fee for individual taxpayers. It addresses two specific categories of defaults involving prescribed statements, documents or certificates:

  • Section 429(1)(a): A research association, university, college or other institution referred to in Section 45(3)(a), or a company referred to in Section 45(3)(b), that does not deliver prescribed documents or furnish the prescribed certificate under Section 45(4)(a) within the applicable time.
  • Section 429(1)(b): An institution or fund that fails to furnish a statement under Section 354(1)(e) within the prescribed time, or the certificate under Section 354(1)(g).

What does Section 429 provide?

Subsection (1): Daily fee for the specified default

Where either of the defaults described above occurs, the entity is liable to a fee of Rs. 200 for every day during which the failure continues. The phrase "without prejudice to the provisions of this Act" means the fee does not, by itself, displace other applicable statutory consequences.

Subsection (2): Maximum fee and payment timing

The aggregate fee cannot exceed the amount in respect of which the failure occurred. The fee must be paid before delivering the overdue statement or documents, or furnishing the overdue certificate, as applicable.

Important distinction: Section 427 covers certain TDS/TCS statements and financial transaction statements. Section 428 addresses specified return, audit and report defaults. Section 429 is confined to the categories identified in its own subsection (1).

Relevant statutory terms and references

Research association, university, college or other institution: Entities referred to in Section 45(3)(a) in connection with the statutory provisions governing eligible scientific research expenditure. Their actual eligibility depends on the conditions in Section 45 and applicable rules.
Company referred to in Section 45(3)(b): A company falling within the particular scientific-research provision cited by Section 429(1)(a), subject to the conditions of Section 45.
Institution or fund: An entity subject to the specified statement and certificate requirements of Section 354(1)(e) and (g). Whether an entity is covered must be checked against Section 354 and its approval framework.
Prescribed: A requirement whose form, manner or time is specified under the applicable income-tax rules or notifications; the Act itself does not set every filing deadline in Section 429.
Day of continuing default: A day during which the required statement, document or certificate remains unprovided after the applicable deadline; the fee is charged per day, not per month.

How is the fee calculated?

For a covered default, the statutory fee is calculated at Rs. 200 multiplied by the number of days of continuing default, subject to the ceiling in Section 429(2)(a).

Illustration: Assume a covered statement is furnished 35 days late and the amount to which the default relates is Rs. 50,000. The daily fee is 35 × Rs. 200 = Rs. 7,000. Since this is below Rs. 50,000, the illustrative fee is Rs. 7,000. If the relevant amount were Rs. 5,000 instead, the statutory ceiling would limit the fee to Rs. 5,000. These are hypothetical figures; the correct amount must be established for the actual filing.

Determine the precise due date from the governing rules, count the continuing days of default, identify the amount in respect of which the failure occurred, and apply the lower of the daily fee and statutory cap.

Practical compliance checklist

  1. Identify whether the filing falls under Section 45(4)(a) or Section 354(1)(e) or (g).
  2. Verify the applicable prescribed form, filing method and deadline.
  3. Calculate the days of delay and the amount to which the default relates.
  4. Apply the Rs. 200-per-day fee and Section 429(2)(a) ceiling.
  5. Pay the fee before submitting the overdue documents, statement or certificate and retain the payment acknowledgement.
  6. Maintain records of the original due date, actual filing date and supporting calculation.

Frequently asked questions

Is the Section 429 fee Rs. 200 per day?

Yes. For the defaults expressly covered by Section 429(1), the fee is Rs. 200 for each day the failure continues, subject to the statutory ceiling.

Is there a maximum amount?

Yes. Under Section 429(2)(a), the fee cannot exceed the amount in respect of which the failure occurred. There is no universal fixed rupee cap stated in Section 429.

Can the overdue statement be filed before paying the fee?

Section 429(2)(b) requires payment before delivering the relevant statement or documents or furnishing the certificate.

Does Section 429 apply to an individual's late income-tax return?

No. The late-return fee is addressed separately under Section 428, where its conditions apply.

Which provision applied under the Income-tax Act, 1961?

The broadly corresponding provision was Section 234G of the Income-tax Act, 1961.

Official legal references

For authoritative text and any subsequent changes, consult the official Income Tax Department publication and the relevant sections of the Income-tax Act, 2025.

Income-tax Act 2025 (official PDF)Section 429 (official text)Finance Act 2026

Updated: 12 November 2026. This is a general legal explanation; verify current rules, notifications and facts before applying it to a particular filing.