# The Finance Act, 2026, Section 96: Substitution of new sections for sections 427 and 428

- Act: The Finance Act, 2026 (Act 4 of 2026)
- Ministry: Ministry of Finance
- Source URL: https://indiacode.ecourtsindia.com/finance-act-2026/section/96/

## Text

Substitution of new sections for sections 427 and 428. 96. For sections 427 and 428 of the Income-tax Act, the following sections shall be substituted, namely:— Fee for default in furnishing statements. "427. (1) Without prejudice to the provisions of this Act, where any person fails to deliver or cause to be delivered a statement as per section 397(3)(b) within the time prescribed therein, he shall be liable to pay by way of fee, a sum of Rs. 200 for every day for which such failure continues. (2) The amount of fee referred to in sub-section (1) shall— (a) | not exceed the amount of tax deductible or collectible; and (b) | be paid before delivering or causing to be delivered the statement, as per sub-section (1). (3) Without prejudice to the provisions of this Act, where any person who is required to furnish a statement of financial transaction or reportable account under section 508(1), fails to furnish such statement within the time prescribed under section 508(2), he shall be liable to pay by way of fee, a sum of Rs. 200 for every day for which such failure continues and such fee shall not exceed a sum of Rs. 100000. Fee for default in furnishing return of income, audited accounts and reports. 428. 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 Rs. 1000, if the total income of such person does not exceed Rs. 500000; and (ii) | a sum of Rs. 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 Rs. 1000, if the total income of such person does not exceed Rs. 500000; and (ii) | a sum of Rs. 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 Rs. 75000 for a delay up to one month for which such failure continues; and (ii) | a sum of Rs. 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 Rs. 50000 for a delay up to one month for which such failure continues; and (ii) | a sum of Rs. 100000 thereafter.".

---
Published by eCourtsIndia together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957.