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To appeal an income tax penalty order in India, first identify which Income-tax Act governs the proceeding, then file the corresponding first-appeal form—Form 35 under the 1961 Act or Form 99 under the 2025 Act—through the Income Tax Department’s e-Filing portal. For a penalty appeal, the official guidance gives a 30-day deadline from service of the notice of demand relating to the order, so preserve evidence of the date you received it.
First, identify which Income-tax Act applies
The Income-tax Act, 2025 took effect on 1 April 2026. The Income Tax Department’s transition FAQs say that proceedings initiated after that date for tax years beginning before 1 April 2026 are carried out under the repealed Income-tax Act, 1961. The date you file the appeal, by itself, does not determine which Act applies.
Check the tax year and the applicable transition provisions before choosing a form. For a 1961 Act matter, confirm that the particular penalty order is appealable; the Department’s Form 35 FAQ identifies section 246A as the list of appealable orders. The guide here covers the first appeal to a JCIT(A) or CIT(A), not a later appeal to the ITAT, High Court or Supreme Court.
What is the time limit to appeal a penalty order?
The Income Tax Department’s Form 35 and Form 99 guidance states that an appeal relating to a penalty should be filed within 30 days from service of the notice of demand relating to the order. The appeal notice in the notified Income-tax Rules, 2026 also says an appeal against an assessment, fine or penalty may be presented within thirty days of receipt.
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Use the demand notice’s actual service or receipt date to calculate the deadline; do not assume the date printed on the penalty order starts the clock. Keep the notice and any reliable evidence showing when and how it was served. If you are close to the deadline, check the current portal instructions and applicable rules promptly.
If 30 days have passed
You can still submit an appeal with a request to condone the delay. Under the 1961 Act guidance, the appellate authority may condone delay where there was reasonable cause; the Form 99 workflow also asks for grounds for condonation when an appeal is late. Give a clear date-by-date account of what prevented timely filing and attach supporting records. Condonation is discretionary, so an explanation does not guarantee that the appeal will be admitted.
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Which form do I file?
The two routes differ by the Act governing the proceeding. Check the transition rule and the portal’s current prompts before submitting.
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Repair common Windows errors and clear accumulated junk for a smoother, more stable PC - no reinstall needed.Free scan · no reinstall| Route | Form and portal | Fee information |
|---|---|---|
| Eligible matter under the Income-tax Act, 1961 | Form 35 on the Income Tax Department e-Filing portal. Confirm that the penalty order is appealable and select the appropriate appellate authority. | The Department’s Form 35 FAQ gives the assessed-income bands and the fee for other matters shown below. |
| Matter under the Income-tax Act, 2025 | Form 99 on the e-Filing portal. The manual gives two routes to start it: Pending Actions → E-Proceedings → For your Information → File Appeal, or e-File → Income Tax Forms → File Income Tax Forms, then select Form 99. | The Form 99 manual says the form accepts ₹250, ₹500 or ₹1,000. The material reviewed does not establish that the 1961 Act’s income bands apply to every 2025 Act case; follow the current portal and governing rules. |
How much is the appeal fee?
For Form 35 appeals under the 1961 Act, the Department’s FAQ states the following fee schedule. It says to pay the fee before filing and attach proof of payment.
| Assessed total income or matter | Form 35 fee stated in the Department FAQ |
|---|---|
| ₹1 lakh or less | ₹250 |
| More than ₹1 lakh and no more than ₹2 lakh | ₹500 |
| More than ₹2 lakh | ₹1,000 |
| Other matters | ₹250 |
For Form 99, do not carry these assessed-income bands over without checking. The Department’s manual identifies the amounts the form accepts, but the material reviewed does not map them to categories for every 2025 Act appeal. Confirm the fee and category shown by the current portal and the rules applicable to your case.
Prepare the appeal before opening the form
Gather the records and information the form may ask for, and make sure the appeal is internally consistent before submitting:
- The complete penalty order, including its section and subsection, date, issuing authority, and DIN or order number.
- The notice of demand and evidence of its service or receipt date.
- Applicable appeal-fee and tax-payment details, with proof where requested.
- The return acknowledgement, if the portal requests it.
- A concise statement of facts in chronological order.
- Numbered grounds that identify the challenged finding or legal basis and state the relief sought.
- Documents supporting each ground, labelled so you can refer to them clearly in the appeal.
- Details of any other pending appeal requested by the form.
- If filing late, the condonation request, a date-by-date explanation and supporting records.
- A working e-Filing account and the verification method required for the appellant.
The Department’s Form 35 and Form 99 manuals describe requests for the order and demand details, facts, grounds, supporting documents, fee and tax information, pending-appeal details where applicable, and verification. Complete the fields relevant to your case and follow the live portal prompts if they differ from the manuals.
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For Form 35 under the 1961 Act
- Sign in to the Income Tax Department e-Filing portal and open Form 35.
- Confirm that the order is appealable under the applicable provisions and select the appropriate appellate authority.
- Enter the order and demand information, then complete the appeal details and attach the statement of facts, numbered grounds and supporting documents.
- Enter the applicable fee and payment details, attach proof as required, and complete the portal’s verification step.
For Form 99 under the 2025 Act
- Sign in and start Form 99 through either route in the manual: Pending Actions → E-Proceedings → For your Information → File Appeal, or e-File → Income Tax Forms → File Income Tax Forms.
- Identify the relevant tax year or block period and enter the order or DIN information, together with order and service details.
- Complete the appeal and tax-payment details requested, add the statement of facts and grounds, and attach supporting documents.
- Enter fee details, provide condonation grounds if filing late, and e-verify the completed appeal.
Portal labels can change. Follow the current instructions displayed during filing and save the acknowledgement and submitted documents for your records.
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What happens after submission?
The Department describes first appeals as part of its faceless appeal framework. Monitor e-Proceedings and the contact channels registered to your account for notices, information requests and hearing updates. The Form 35 and Form 99 manuals say the appellant may request a personal hearing through video conferencing; the process they describe is request-based.
How to make the grounds useful
Keep the statement of facts separate from the grounds: use the facts to set out what happened and when, and use each numbered ground to identify a specific part of the order you challenge and the relief you seek. Tie each ground to the relevant document by label or reference, and check that the dates and figures agree with the order, demand notice and payment records. The legal basis and strength of grounds depend on the particular order and tax period; where those are complex, consider getting advice from a qualified Indian tax professional or tax-litigation lawyer.
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