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Section96
The Finance Act, 2026

Substitution of new sections for sections 427 and 428

In force Act 4 of 2026 As on 11 Oct 2026

Act 4 of 2026 Ministry Finance

Section 96 of the Finance Act, 2026 deals with substitution of new sections for sections 427 and 428. Substitution of new sections for sections 427 and 428.

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.".
Section 96, The Finance Act, 2026 (Act 4 of 2026).

Cross-references

Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.

This section refers to

  1. s. 63 Amendment of section 232

Questions about Section 96

What does Section 96 of the Finance Act deal with?

Section 96 of the Finance Act is headed "Substitution of new sections for sections 427 and 428". Substitution of new sections for sections 427 and 428.

How do I find court cases under Section 96 of the Finance Act?

In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Finance Act 2026 96, section 96 Finance Act 2026, section 96 of the Finance Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.

What should I read with Section 96 of the Finance Act, and has it changed?

Its own text turns on section 63 (Amendment of section 232), so none of them can safely be read on its own.

When was the Finance Act enacted?

Finance Act was enacted in 2026 as Act 4 of 2026. India Code records no commencement date for it. It is in force as at the date shown on this page.

Other sections of this Act

Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Harvested from the Income Tax Department's own portal at incometaxindia.gov.in, which publishes the Finance Acts section by section. India Code carries none of them: its Central community holds the Acts that stand as general law, and a Finance Act is an amending and rate-fixing instrument. This page is not a substitute for legal advice.