To appeal an income tax penalty order in India, first identify which Income-tax Act governs the proceeding, then file the applicable first-appeal form—Form 35 for eligible matters under the Income-tax Act, 1961, or Form 99 for matters under the Income-tax Act, 2025—through the Income Tax Department’s e-Filing portal. The usual deadline is 30 days from service of the notice of demand relating to the penalty order, not simply 30 days from the date printed on the order. Check that your particular order is appealable and preserve proof of when the demand notice was served.
Which Income-tax Act applies to your penalty appeal?
The Income-tax Act, 2025 took effect on 1 April 2026, but that date alone does not determine which appeal form to use. The Income Tax Department’s transition guidance says that proceedings initiated after that date for tax years beginning before 1 April 2026 are carried out under the repealed Income-tax Act, 1961. Identify the relevant tax year and apply the transition rules before choosing a form.
| What to check | First-appeal route | Important qualification |
|---|---|---|
| Eligible matter governed by the Income-tax Act, 1961 | Form 35 | The Department’s Form 35 FAQ identifies section 246A as the list of appealable orders. Confirm that your specific penalty order is appealable and select the correct appellate authority. |
| Matter governed by the Income-tax Act, 2025 | Form 99 | Use the 2025 Act route where the transition rules and proceeding make that Act applicable. |
The first appeal is to the Joint Commissioner of Income-tax (Appeals) or Commissioner of Income-tax (Appeals), as applicable. The broader appellate ladder continues to the Income Tax Appellate Tribunal, High Court and Supreme Court; this guide covers only the first appeal.
What is the time limit to appeal a penalty order?
File within 30 days from service of the notice of demand relating to the penalty order. The Income Tax Department’s Form 35 guidance and Form 99 manual state this period, and the notified Income-tax Rules, 2026 demand notice also refers to thirty days from receipt. For a penalty appeal, record the date the demand notice was actually served or received and keep the evidence. Do not assume that the order date starts the clock.
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The applicable limitation calculation depends on the order, governing Act and circumstances. Check the notice and current portal instructions promptly; if there is doubt about the deadline or service date, obtain case-specific advice rather than waiting.
Can you appeal after 30 days?
You may ask the first appellate authority to condone a delay. Under the 1961 Act guidance, the authority may condone delay where the assessee had reasonable cause; the Form 99 workflow also asks for grounds for condonation when an appeal is late. Condonation is discretionary, not automatic.
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Include a clear chronology explaining the delay and attach records that support it—for example, documents showing when the order or demand notice came to your attention and why you could not file sooner. The explanation should address the actual dates and circumstances of your case.
How do you file Form 35 or Form 99 online?
Form 35 for an eligible 1961 Act matter
The Income Tax Department’s Form 35 FAQ says an assessee or deductor aggrieved by an Assessing Officer’s order may file a first appeal using Form 35 on the e-Filing portal. Verify appealability under section 246A and ensure that the authority selected is the one applicable to your case. Follow the portal’s current prompts for the filing and verification requirements.
Form 99 for a 2025 Act matter
The Department’s Form 99 manual describes two ways to start filing on the e-Filing portal:
- Pending Actions → E-Proceedings → For your Information → File Appeal
- e-File → Income Tax Forms → File Income Tax Forms, then select Form 99 under the 2025 Act.
The form asks for the relevant tax year or block period, the order and its DIN or other identifying number, order and service information, relevant appeal and tax-payment details, facts and grounds, fee details, and verification. Portal menus can change, so use the labels and instructions currently displayed.
What should you prepare before filing?
Gather the record before opening the form. The relevant details vary by route and case, but the Department’s manuals call for information and documents covering the order, demand, grounds, payments, fee and verification.
- The complete penalty order, including the section or subsection, date, issuing authority, and DIN or order number.
- The notice of demand relating to the order and evidence of its service or receipt date.
- The applicable appeal-fee details and proof of payment, if required.
- Tax-payment details and any return acknowledgement requested by the form.
- A concise statement of facts in chronological order.
- Numbered grounds that identify the challenged findings or legal basis and state the relief sought.
- Documents relied on for each ground, labelled so the appeal can refer to them clearly.
- Details of any other pending appeal requested by the form.
- If filing late, a date-by-date delay explanation and supporting records for a condonation request.
- A working e-Filing account and access to the verification method required for the appellant.
What appeal fee applies?
The fee depends on the governing Act and case. The Income Tax Department’s Form 35 FAQ gives the following schedule for appeals under the 1961 Act. It says the fee is paid before filing and proof is attached.
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| 1961 Act Form 35 category | Fee stated in the Department’s FAQ |
|---|---|
| Assessed total income of ₹1 lakh or less | ₹250 |
| Assessed total income more than ₹1 lakh and no more than ₹2 lakh | ₹500 |
| Assessed total income more than ₹2 lakh | ₹1,000 |
| Other matters | ₹250 |
The Form 99 manual says the form accepts fee details of ₹250, ₹500 or ₹1,000, but the material it provides does not establish that the 1961 Act’s assessed-income bands apply to every 2025 Act case. For Form 99, confirm the applicable category and amount under the current portal instructions and governing rules rather than carrying over the old bands without checking.
What happens after you submit the appeal?
First appeals are handled through the Department’s faceless appeal framework. Monitor e-Proceedings and the contact channels registered to your account for notices, requests for information and hearing updates. Respond within the time stated in each communication and retain copies of submissions and acknowledgements.
The Form 35 and Form 99 manuals describe a request-based video hearing: “the appellant may request for a personal hearing through video conferencing”. If you need to explain a point orally, make the request using the process shown in the relevant form or portal workflow.
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