Late fees u/s 429 (Form 113 & 114) Income Tax
Late fee provisions are covered under Section 429 of the new Income-tax Act, 2025, which governs the default in furnishing specific statements and certificates.
Here are the rules and late fee structures under Section 429:
1. Applicability (Who is Liable) The late fee under Section 429 applies to specific entities that fail to file required statements or issue certificates on time:
- Research Associations & Educational Institutions: If a research association, university, college, other institution [referred to in section 45(3)(a)], or a company [referred to in section 45(3)(b)] fails to deliver prescribed documents or furnish a certificate within the time prescribed under Section 45(4)(a).
- Institutions or Funds (e.g., NGOs/Trusts): If an institution or fund fails to deliver a statement within the prescribed time under Section 354(1)(e), or fails to furnish a certificate as prescribed under Section 354(1)(g). (Note: These provisions generally relate to the reporting of donations received and the issuance of donation certificates to donors).
2. Amount of the Late Fee For any of the defaults mentioned above, the defaulting entity is liable to pay a late fee of ₹200 for every day during which the failure continues.
3. Maximum Cap on the Fee The total amount of the late fee levied cannot exceed the amount in respect of which the failure has occurred.
4. Mandatory Pre-payment Rule The accumulated late fee must be paid before the entity can deliver the delayed statement or furnish the delayed certificate.
5 What is Form 113 and Form 114 Income tax Act 2025
Refer Section 429 Income Tax Act 2025 Fee for default relating to statement or certificate.