To appeal an income tax penalty order in India, first identify which Income-tax Act governs the matter, then file the applicable first-appeal form online: generally Form 35 for eligible matters under the Income-tax Act, 1961, or Form 99 for matters under the Income-tax Act, 2025. For a penalty appeal, the Income Tax Department’s current guidance states a 30-day deadline from service of the notice of demand. Check the order and demand notice carefully: the tax year, appealability, service date, fee and filing requirements can change the route.
First check which Income-tax Act applies
The Income-tax Act, 2025 took effect on 1 April 2026, but the filing date alone does not determine which Act governs an appeal. 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say that proceedings initiated after that date for tax years beginning before 1 April 2026 are carried out under the repealed Income-tax Act, 1961. Check the tax year and applicable transition provisions before choosing a form.
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| What to check | Route indicated by current Department guidance |
|---|---|
| Eligible matter governed by the Income-tax Act, 1961 | First appeal using Form 35. Under the 1961 Act, section 246A lists appealable orders; confirm that the specific penalty order qualifies. |
| Matter governed by the Income-tax Act, 2025 | First appeal using Form 99. |
The Department describes the appellate ladder as Assessing Officer → JCIT(A)/CIT(A) → ITAT → High Court → Supreme Court, and says the 2025 Act’s structure is materially unchanged. This guide covers only the first appeal to JCIT(A) or CIT(A), not appeals at later stages.
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What is the time limit to appeal a penalty order?
The Department’s Form 35 and Form 99 guidance states that an appeal relating to an assessment or 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 refers to thirty days from receipt. Use the service or receipt date applicable to your case—not automatically the date printed on the penalty order—as the starting point. Record the date and keep proof of service.
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If the 30-day period has passed
You can file a delayed appeal with a request to condone the delay. Under the Department’s 1961 Act guidance, the first appellate authority may condone delay where the assessee had reasonable cause; the Form 99 workflow also asks for the grounds for condonation when an appeal is late. Explain the delay clearly with a date-by-date chronology and supporting records. Condonation is discretionary, not guaranteed.
Choose the correct form and online route
For an eligible matter under the 1961 Act: Form 35
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. Confirm that your specific penalty order is appealable under section 246A and select the correct appellate authority.
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For a matter under the 2025 Act: Form 99
The Department’s Form 99 manual provides two ways to start the appeal 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 99 workflow asks for the relevant tax year or block period, the order and DIN, order and service information, relevant appeal and tax-payment details, facts and grounds, fee details, and e-verification. Portal menus may change; follow the current prompts shown in your account.
Prepare the appeal before you start
Gather the relevant records and work out the grounds before completing the online form. The Department’s Form 35 and Form 99 materials identify the order, demand notice, fee and tax details, statement of facts, grounds, supporting documents, pending-appeal information and verification as relevant parts of the filing.
- The complete penalty order, including its section or subsection, date, issuing authority, and DIN or order number.
- The notice of demand and evidence of when it was served or received.
- Appeal-fee payment details and proof, as applicable under the governing Act and your case.
- Relevant tax-payment information and any return acknowledgement requested by the portal.
- A concise statement of facts in chronological order.
- Numbered grounds identifying each challenged finding or legal basis and the relief you seek.
- Documents supporting each ground, labelled so you can refer to them clearly in the appeal.
- Details of another pending appeal, if the form requests them.
- If filing late, your condonation request, chronology and supporting records.
- Access to your e-Filing account and the verification method required for the appellant.
Check the fee under the applicable Act
The Department’s Form 35 FAQ gives this fee schedule for appeals under the 1961 Act and says the fee is paid before filing, with proof attached:
| 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 does not establish that the 1961 Act’s assessed-income bands apply to every 2025 Act case. For Form 99, confirm the amount and category shown by the current portal and governing rules rather than assuming the older bands carry over.
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Complete the applicable form, attach the requested records, enter the required fee and tax-payment information, and e-verify the filing as prompted. Keep the submission acknowledgement and filed documents. After submission, monitor e-Proceedings and your registered contact channels for notices, requests for information and hearing details.
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The Department’s Form 35 and Form 99 manuals describe a request-based video hearing: “the appellant may request for a personal hearing through video conferencing”. Follow the instructions in the appeal proceedings if you want to request one.
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