Section 234G: Fee for Default Relating to Statement or Certificate
Section 234G of the Income-tax Act, 1961 imposed a daily fee on specified research bodies, institutions, funds and companies for delay in furnishing prescribed statements or certificates. From 1 April 2026, the corresponding provision is Section 429 of the Income-tax Act, 2025.
Meaning of Section 234G of the Income-tax Act, 1961
Section 234G is titled Fee for default relating to statement or certificate. It was designed to enforce reporting and certificate obligations connected with specified scientific research entities and institutions or funds eligible under the donation deduction provisions.
Defaults covered by Section 234G
Under Section 234G(1), the fee applies, without prejudice to other provisions of the Act, where either of the following specified defaults occurs:
- A research association, university, college or other institution referred to in Section 35(1)(ii) or Section 35(1)(iii), or a company referred to in Section 35(1)(iia), fails to deliver the prescribed statement within the time prescribed under Section 35(1A)(i), or fails to furnish the prescribed certificate under Section 35(1A)(ii).
- An institution or fund fails to deliver the statement within the time prescribed under Section 80G(5)(viii), or fails to furnish the certificate prescribed under Section 80G(5)(ix).
Amount of fee under Section 234G
The statutory fee is Rs. 200 for every day during which the failure continues.
| Requirement | Section 234G consequence |
|---|---|
| Specified statement or certificate not furnished within the prescribed time | Rs. 200 for every day during which the failure continues |
| Maximum fee | Cannot exceed the amount in respect of which the failure occurred |
| Payment timing | Fee is to be paid before delivering the statement or furnishing the certificate |
Section 429 of the Income-tax Act, 2025
Section 429 of the Income-tax Act, 2025 carries forward the subject of Section 234G under the title Fee for default relating to statement or certificate. It applies from 1 April 2026 under the new Act.
For scientific research related reporting, Section 429 refers to the research association, university, college or other institution covered by Section 45(3)(a), and the company covered by Section 45(3)(b). The prescribed document and certificate obligations are linked to Section 45(4)(a).
For institutions or funds, Section 429 refers to failure to deliver the statement under Section 354(1)(e) within the prescribed time, or failure to furnish the certificate prescribed under Section 354(1)(g).
Fee under Section 429
The fee remains Rs. 200 for every day during which the failure continues. Under Section 429(2), the total fee cannot exceed the amount in respect of which the failure occurred, and it must be paid before the statement is delivered or the certificate is furnished.
Section 234G and Section 429 comparison
| Particular | Income-tax Act, 1961 | Income-tax Act, 2025 |
|---|---|---|
| Provision | Section 234G | Section 429 |
| Subject | Fee for default relating to statement or certificate | Fee for default relating to statement or certificate |
| Daily fee | Rs. 200 per day of continuing default | Rs. 200 per day of continuing default |
| Scientific research cross-reference | Section 35 | Section 45 |
| Institution or fund cross-reference | Section 80G | Section 354 |
Practical effect of the provision
The fee is linked to the period for which the prescribed reporting or certificate default continues. Compliance therefore involves identifying the correct statutory obligation, the prescribed form or statement, the applicable due date, and the date on which the default is actually cured.
The words without prejudice to the provisions of this Act indicate that the fee provision does not by itself exclude other consequences that may arise under the applicable law.
Important points
- The levy is described by the statute as a fee.
- The rate is Rs. 200 for each day of continuing failure.
- The statutory cap prevents the fee from exceeding the amount in respect of which the failure occurred.
- The fee is payable before the delayed statement is delivered or the certificate is furnished.
- For matters governed by the Income-tax Act, 2025, Section 429 and its new cross-references should be used instead of mechanically applying the old section numbers.
Official references
- Income Tax Department - 1961 Act to 2025 Act section mapping
- Income-tax Act, 2025 - official resources
- Income Tax e-Filing Portal
This article is for general information. For compliance, the applicable Act, Rules, prescribed forms, notifications, circulars and official filing instructions for the relevant period should be checked.