First identify the Act and provision cited in the penalty order: official guidance points to Form 35 for covered appeals under the Income-tax Act, 1961, and to Form 99 for appeals under section 358 of the Income-tax Act, 2025. For the penalty appeals covered by the provisions described here, the filing period is 30 days from service of the notice of demand—not automatically 30 days from the order date. Check the order, service record, applicable transition rules and current e-filing instructions before filing.
Which Act and appeal form apply to your penalty order?
Read the penalty order and its accompanying notice of demand before choosing a form. The statute, section and issuing authority help determine whether the order can be appealed to the Commissioner (Appeals) and which procedure governs.
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| What to check | Income-tax Act, 1961 | Income-tax Act, 2025 |
|---|---|---|
| Appeal coverage | Check whether the order is covered by section 246A. | Check whether the penalty order is among those covered by section 357. |
| Form indicated by official guidance | Form 35 for specified appeals; the Department’s guidance directs electronic filing. | Form 99 for appeals under section 358, as identified in the Department’s 2026 FAQ. |
| Procedure to verify | Check Rule 45, the applicable form requirements and current portal instructions. | Check section 358, Form 99 instructions, current portal steps and transition rules. |
The form is not simply a preference between two versions. If a proceeding or order spans the change between the Acts, the available official material does not establish one universal transition rule for every case. Determine which Act and savings or transition provision govern the particular proceeding; do not assume that Form 99 replaces Form 35 for every older or pending matter.
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When does the 30-day appeal period begin?
For the penalty appeals covered by the provisions described in the official materials, the period is 30 days from service of the notice of demand relating to the penalty. The date printed on the penalty order is not necessarily the date from which to count.
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- Keep the notice of demand and the available record or proof showing when it was served.
- Use the service event applicable to your case when calculating the period, and check any relevant limitation rules or exclusions against the facts.
- If the deadline may have passed, consider filing an application explaining the delay and supporting the stated reasons with evidence. The authority may admit a late appeal for sufficient cause, but condonation is discretionary, not automatic.
How to prepare and submit the appeal
- Record the order details. Note the provision cited, issuing authority, order date, demand amount and actual service date of the demand notice.
- Confirm the forum and governing procedure. Check appealability under section 246A of the 1961 Act or section 357 of the 2025 Act, as applicable. Resolve any transition question before selecting the form.
- Draft the statement of facts and grounds. Describe the relevant events and identify each specific part of the penalty decision being challenged. Tie each ground to the order, supporting record and relevant legal provision; avoid unsupported or general objections.
- Assemble supporting material. For the 1961 Act Form 35 workflow, the Department’s manual describes the memorandum, statement of facts, grounds of appeal, appealed order and notice of demand as core appeal materials. Include relevant correspondence and evidence relied on. For a 2025 Act appeal, follow the current Form 99 and portal checklist rather than assuming every Form 35 instruction applies.
- File through the current e-filing workflow. Submit the applicable form electronically, complete the required verification and pay the prescribed appeal fee. Save the filed appeal, acknowledgement and copies of uploaded documents.
- Address delay if necessary. If filing after the applicable period, include a reasoned request for admission of the late appeal and evidence supporting the explanation.
What appeal fee and payment conditions apply?
The Department’s Form 35 guidance lists the following fee bands for covered appeals under the 1961 Act. Section 358 of the 2025 Act states corresponding amounts. Confirm which Act and category apply to the case, including the relevant assessed-income basis, and check the portal’s current payment instructions.
| Category in the official guidance | Appeal fee |
|---|---|
| Assessed total income up to ₹1,00,000 | ₹250 |
| Assessed total income above ₹1,00,000 and up to ₹2,00,000 | ₹500 |
| Assessed total income above ₹2,00,000 | ₹1,000 |
| Other covered matters not falling in those categories | ₹250 |
The appeal fee may not be the only admission condition. Section 249 of the 1961 Act and section 358 of the 2025 Act also set out tax-payment conditions, with an exemption mechanism in specified circumstances. Whether a condition applies, and whether an exemption is available, depends on the appellant’s return and payment facts. Check the applicable statutory provision and exemption procedure rather than treating payment of the appeal fee as sufficient by itself.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What the appeal does not establish by itself
Filing an appeal does not, by itself, establish that the order is appealable, that the appeal will succeed, or that collection of the demand is stayed. Those questions depend on the governing law and case facts; do not assume that filing alone suspends recovery.
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