How to File an Income Tax Appeal: Form 99, Fee and 30-Day Limit (Income Tax Act 2025)

A first appeal against an assessment, penalty or similar order is filed in Form No. 99, electronically, with a fee of Rs 250, Rs 500 or Rs 1,000 depending on the income computed by the Assessing Officer. It must be presented within 30 days of service of the notice of demand (assessment or penalty) or of the intimation of the order (other cases). These rules are in section 358 of the Income-tax Act, 2025 and rule 167 of the Income-tax Rules, 2026.

This guide covers where to appeal, how to count the 30 days, the fee slabs, the tax you must pay before the appeal is admitted, and what happens at the hearing. All points come from the Act as amended by the Finance Act, 2026 (effective 1 April 2026) and the Rules. It is information, not advice on any particular case.

Which orders can be appealed to the Joint Commissioner (Appeals) or Commissioner (Appeals)?

Section 356(1) lets an assessee, a deductor or a collector appeal to the Joint Commissioner (Appeals) against these orders of an Assessing Officer (below the rank of Joint Commissioner). Section 357 separately lists the orders appealable to the Commissioner (Appeals), including some not listed here, so check it for your order:

• an intimation under section 270(1) or 399(1), where you object to the adjustments made;
• an order under section 270(10) or 271, where you object to the income assessed, the tax determined, the loss computed or the status under which you are assessed;
• an order of assessment, reassessment or recomputation under section 279;
• an order under section 398;
• an order imposing penalty under Chapter XXI;
• an order under section 287 or 288 amending any of the above.

Section 356(2) adds a limit: no appeal goes to the Joint Commissioner (Appeals) if the order was passed by, or with the prior approval of, an income-tax authority above the rank of Deputy Commissioner. Section 356(3) lets the Board, or an authority it authorises, transfer a pending appeal between the Commissioner (Appeals) and the Joint Commissioner (Appeals). If that happens you must be given an opportunity of being reheard (section 356(4)).

For the full ladder above this stage (Tribunal, High Court, Supreme Court), read our guide to income tax appeals under the 2025 Act.

Which form is used to file the appeal?

Rule 167(1) says an appeal to the Joint Commissioner (Appeals) or the Commissioner (Appeals) is made in Form No. 99. Under rule 167(2) it is furnished electronically:

• by digital signature, if the person's return of income is furnished under digital signature; or
• by electronic verification code, in every other case.

Even an assessee who has the option to file the return on paper must furnish Form 99 electronically (rule 167(2)(b)). The form is verified by the person who is authorised to verify the return of income under section 265 for that type of assessee (rule 167(3)). Any document that goes with the form must be furnished the same way the form is (rule 167(4)).

How much is the appeal fee?

Section 358(2) fixes the fee by the total income computed by the Assessing Officer in the case the appeal relates to:

Total income as computed by the Assessing Officer	Fee	Clause
Rs 1,00,000 or less	Rs 250	358(2)(a)
More than Rs 1,00,000 but not more than Rs 2,00,000	Rs 500	358(2)(b)
More than Rs 2,00,000	Rs 1,000	358(2)(c)
Subject matter not covered by the three rows above	Rs 250	358(2)(d)

The fee depends on the income as the Assessing Officer computed it, not on the income you returned and not on the amount in dispute.

What is the time limit to file the appeal?

Section 358(3) gives thirty days, counted from:

• the date of service of the notice of demand, where the appeal relates to an assessment or a penalty (clause (a)); or
• the date on which intimation of the order is served, in any other case (clause (b)).

The clock runs from service, not from the date printed on the order. Section 501(1) lists the ways a notice or order can be served: post or approved courier, the Code of Civil Procedure method for summons, an electronic record, or any other prescribed means. For orders under section 358(3)(b), rule 191(1) says intimation is served in the same manner as a notice under section 501.

Does time spent on a section 440(1) application count?

Not always. Under section 358(4), where an application under section 440(1) (waiver of penalty and immunity from prosecution) is rejected, the period from the date the application was made to the date the rejection order is served on you is excluded from the 30 days. This exclusion is stated for appeals against assessments and penalties under section 358(3)(a). Note also that section 440(1)(d) requires that no appeal has been filed against the assessment or penalty order, so you choose between the waiver route and the appeal route for that order.

What if you miss the 30 days?

Section 358(5) allows the Joint Commissioner (Appeals) or the Commissioner (Appeals) to admit the appeal after the period if satisfied that you had sufficient cause for not presenting it in time. The Act does not define sufficient cause, and admission is at the authority's discretion. File the delay application with a clear, dated explanation and supporting documents.

Do you have to pay tax before the appeal is admitted?

Yes, a basic amount. Section 358(6) says no appeal is admitted unless, at the time of filing:

• where a return has been filed, you have paid the tax due on the income returned by you; or
• where no return has been filed, you have paid an amount equal to the advance tax that was payable by you.

Section 358(7) allows the authority, on your application and for reasons recorded in writing, to exempt you from the second condition (no return filed). The Act text in this section does not provide an exemption from the first condition. Whether to seek a stay of the disputed demand is a separate question not covered by section 358.

Worked example: which fee applies?

Assumptions: three appeals for tax year 2026-27, each against an assessment order.

Case	Total income computed by the Assessing Officer	Income returned	Fee
A	Rs 85,000	Rs 70,000	Rs 250 (at most Rs 1,00,000)
B	Rs 1,50,000	Rs 1,20,000	Rs 500 (above Rs 1,00,000, up to Rs 2,00,000)
C	Rs 12,40,000	Rs 8,00,000	Rs 1,000 (above Rs 2,00,000)

In Case C the fee stays at Rs 1,000 whether the dispute is Rs 4,40,000 of additions or only a part of it, because the slab follows the assessed total income.

Worked example: counting the 30 days

Assumptions: an assessment demand notice is served on 12 March 2027. The appeal is against an assessment, so section 358(3)(a) applies.

1. Counting the usual way, day 1 is the day after service, 13 March 2027 (confirm how the day of service is treated for your case).
2. March has 31 days, so 12 March plus 19 days is 31 March (19 days).
3. Remaining 11 days run into April: 1 April to 11 April 2027.
4. The 30th day is 11 April 2027.

Check: 19 days in March plus 11 days in April is 30. If a filing deadline falls on a holiday, confirm with the portal or the relevant general clause rather than assuming an extension. The Act text above does not address holidays.

Real-life example: Ravi pays before he files

Ravi, a salaried individual, filed his return for tax year 2026-27 showing tax of Rs 1,10,000, of which Rs 90,000 was already covered by TDS. The Assessing Officer made an addition and raised a larger demand. Ravi wants to appeal. Under section 358(6)(a) he must have paid the tax due on the income he returned, so he first pays the remaining Rs 20,000 shown in his own return, then files Form 99. The additional demand raised by the officer is not itself the amount that section 358(6) asks him to pay before admission.

Real-life example: Meena never filed a return

Meena, a small trader, did not file a return for tax year 2026-27, and an assessment was made against her. Her advance tax payable for that year was Rs 75,000. Section 358(6)(b) asks her to pay an amount equal to that advance tax when she files the appeal. If she cannot, she can apply under section 358(7) to the Commissioner (Appeals), who may exempt her from this condition for reasons recorded in writing.

Real-life example: Suresh gets his clock back after a rejection

Suresh received a penalty demand and made a section 440(1) application. Ten days of the 30 had already passed (so 20 days were left). The application was rejected, and the order was served on him a month later. Under section 358(4) the time between his application and service of the rejection order does not count. The days that remained when he applied (20 here) are still available after the rejection order is served, so he should appeal within that window. He should count carefully and keep proof of dates of application and service.

What happens after the appeal is filed?

Section 359 sets out the procedure:

• The authority fixes a day and place for hearing and gives notice to you and to the Assessing Officer (359(1)).
• You may be heard in person or through an authorised representative. The Assessing Officer may be heard in person or through a representative (359(2)).
• The authority may adjourn the hearing, make further inquiry or direct the Assessing Officer to inquire and report, and may allow a ground of appeal not originally stated if its omission was not wilful or unreasonable (359(3)).
• The order must be in writing and state the points for determination, the decision and the reasons (359(4)).
• Where possible, the appeal is to be heard and decided within one year from the end of the financial year in which it is filed or transferred (359(5)).
• The order is communicated to you and to the Principal Chief Commissioner, Chief Commissioner, Principal Commissioner or Commissioner (359(6)).

The one-year period in section 359(5) is worded "where it is possible", so it is a target, not a guarantee.

Is it Form 99 or Form 35 for older tax years?

Many search results still talk about Form 35. That was the appeal form under the repealed Income-tax Act, 1961. Section 536(2)(c) of the 2025 Act says the repealed Act's procedure continues for proceedings, including appeals, started on or after 1 April 2026 for any tax year beginning before 1 April 2026. So an appeal against an order for tax year 2025-26 or earlier follows the old procedure, while Form 99 and section 358 apply to orders under the 2025 Act. Section 536(2)(k) adds that an appeal period that had already expired under the old Act is not revived by the longer period in the new one. Check which Act governs your order before you pick the form.

What can the appellate authority do with the appeal?

Under section 360(1), in an assessment appeal the authority may confirm, reduce, enhance or annul the assessment. In a penalty appeal it may confirm, cancel or vary the penalty, up or down. Section 360(2) bars an enhancement of assessment or penalty, or a cut in refund, unless you have had a reasonable opportunity of showing cause. Section 360(3) lets the authority decide any matter arising from the same proceedings even if you did not raise it. This is why an appeal against a small addition can still reopen other points.

Quick reference

Item	Rule	Where
Form	Form No. 99, electronic	Rule 167(1), (2)
Verification	By person who verifies the return under section 265	Rule 167(3)
Fee	Rs 250 / Rs 500 / Rs 1,000 by assessed income	Section 358(2)
Time limit	30 days from service	Section 358(3)
Late appeal	May be admitted for sufficient cause	Section 358(5)
Tax to pay first	Tax on returned income, or advance tax if no return	Section 358(6)
Exemption from the pre-payment	Only for the no-return case, on application	Section 358(7)
Target for decision	One year from end of the financial year of filing	Section 359(5)

Common mistakes

• Counting from the order date. The 30 days run from service of the notice of demand or intimation, so keep the proof of service.
• Forgetting the section 358(6) payment. An appeal filed without paying tax on the returned income is not admitted.
• Paying the fee by the disputed amount. The slab follows the total income computed by the Assessing Officer.
• Using the wrong verifier. Form 99 is verified by the person authorised under section 265, not by anyone in the office.
• Leaving out a ground. The authority may allow a new ground only if the omission was not wilful or unreasonable, so list every ground at filing.
• Filing an appeal after applying for waiver. Section 440(1)(d) makes the waiver conditional on no appeal having been filed against that order.

Where this is in the Act

• Section 356: appealable orders before the Joint Commissioner (Appeals) and transfer of appeals
• Section 358: form of appeal, fee, limitation, condonation, pre-payment
• Section 359: procedure in appeal
• Section 440: waiver of penalty and immunity from prosecution (interaction with limitation)
• Section 501: service of notice and orders
• Rule 167: Form No. 99 and how it is furnished and verified
• Rule 191: mode of service of orders under section 358(3)(b)

For a CA firm, the real risk is a missed 30-day window across many clients. Finexo's practice management software lets you log the service date of each demand and tracks the appeal deadline per client with reminders. It does not file Form 99 for you.