A Lot of Queries from Professional Friends – Whether ₹ 75,000 delay fees for Tax Audit is for these fillings in Sep ’26 or from next year?
Short Answer – No. It shall Apply for Filing done Next year in 2027 for tax year 2026-27.
Detailed Answer –
The Tax Audit being filed in September 2026 pertains to Income Tax Act, 1961 and there is no charging section for such fees in the act of 1961. It has only the penalty section 271B which we are used to every year.
Initially Income Tax Act, 2025 also there is no charging section for such fees. It had Section 446 which was also of penalty nature and not fees. It is the Vide Amendment in Finance Act, 2026 that Section 446 was deleted and fees have been introduced in completely substituted Section 428 where Clause (c) mentions about these fees.
So, in a nutshell, fees is applicable for Tax Year 2026-27 i.e. Next year filing onwards and for current filings it is under penalty jurisdiction.
Disclaimer: The above is our personal understanding, please cross-verify before relying on it
FCA, CWM (AAFM-US), CBV, CIFRS, R-ID, B.COM (H), RV* (IBBI)
Managing Partner at Ankit Gulgulia & Associates, Chartered Accountants. The Firm was setup in 2011 and has offices in Delhi NCR. AGA provides professional services to a large number of Clients both in India and Internationally.
AGA is supported by a well experienced team which include Chartered Accountants, Management Graduates, Company Secretaries, Cost Accountants, Valuers etc.