Form 35 income tax appeal is how you challenge an assessment, penalty or other order of the tax officer before the Commissioner (Appeals), or CIT(A): you file it online within 30 days of receiving the order, with a fee of ₹250 to ₹1,000. If the CIT(A) rules against you, the next step is Form 36 before the Income Tax Appellate Tribunal (ITAT).
Most appeals start after a scrutiny assessment adds income you do not agree with, or after a demand from a tax notice. The figures below are for appeals under the Income-tax Act, 1961, which still governs orders for AY 2026-27 and earlier years (see the 1961 Act hub).
Quick facts
First appeal
Form 35 to CIT(A) or JCIT(A), filed onlineTime limit
30 days from service of the order or demand noticeCIT(A) fee
₹250, ₹500 or ₹1,000 by assessed income; ₹250 for other ordersSecond appeal
Form 36 to ITAT within 2 months from the end of the month the order is receivedITAT fee
₹500, ₹1,500, or 1% of assessed income up to ₹10,000Before you appeal
Pay tax due on the income you returnedFurther appeal
High Court within 120 days, only on a substantial question of law
The appeal ladder in income tax
| Level | Who hears it | Form | Time limit |
|---|---|---|---|
| First appeal | CIT(A), or JCIT(A) for smaller cases decided by lower ranked officers | Form 35 | 30 days from service of the order |
| Second appeal | ITAT | Form 36 | 2 months from the end of the month in which the CIT(A) order is received |
| Cross objection at ITAT | ITAT | Form 36A | 30 days from notice of the other side's appeal |
| Third appeal | High Court, section 260A | Appeal petition | 120 days |
The ITAT is the last stage that looks at facts. The High Court and Supreme Court only take questions of law. The two month ITAT limit applies to orders received from 1 October 2024; earlier, it was 60 days from the date the order was communicated.
Income tax appeal fees at each level
| Assessed income | CIT(A), Form 35 | ITAT, Form 36 |
|---|---|---|
| Up to ₹1 lakh | ₹250 | ₹500 |
| Above ₹1 lakh, up to ₹2 lakh | ₹500 | ₹1,500 |
| Above ₹2 lakh | ₹1,000 | 1% of assessed income, at most ₹10,000 |
| Orders not tied to income, such as a penalty | ₹250 | ₹500 |
The fee depends on the income the officer assessed, not on the tax in dispute. Pay it before filing through e-Pay Tax on the portal, under Other Receipts (500), and quote the challan in the form. Cross objections at the ITAT carry no fee.
Worked example: fees for one dispute
A trader returns ₹5,20,000 for AY 2024-25. The officer adds ₹3,80,000 of unexplained cash deposits, so assessed income becomes ₹9,00,000.
Step 1, CIT(A). Assessed income is above ₹2 lakh, so the Form 35 fee is ₹1,000.
Step 2, ITAT. The CIT(A) confirms the addition. The ITAT fee is 1% of ₹9,00,000, which is ₹9,000. That is under the ₹10,000 cap, so ₹9,000 is payable.
A firm with assessed income of ₹25 lakh would pay ₹1,000 before the CIT(A) and ₹10,000 at the ITAT, because 1% (₹25,000) is capped.
How to file form 35 income tax appeal online
- Log in to the e-filing portal.
- Pay the fee first under e-File, e-Pay Tax, choosing Other Receipts (500).
- Open e-File, then Income Tax Forms, then File Income Tax Forms.
- Under the tab for persons not dependent on any source of income, pick Form 35.
- Select the assessment year and the order you are appealing, with its date of service and the demand.
- Write a short statement of facts and numbered grounds of appeal, and attach the order and challan.
- Submit and verify with Aadhaar OTP, EVC or a digital signature. Save the acknowledgement.
Filed late? Add the reasons for delay in the form. The CIT(A) can admit a late appeal if the cause is sufficient, but give proof such as medical records.
Form 36 income tax appeal to the ITAT
Either side can go to the ITAT: you, if the CIT(A) upheld the addition, or the department, if you won. Form 36 is filed with the grounds, the order under appeal, the CIT(A) order and the fee challan, plus a paper book of the documents you rely on. ITAT benches sit city by city and hear cases in person or by video.
The department does not appeal every loss. Under a CBDT circular it appeals to the ITAT only when the tax effect is above ₹60 lakh, to a High Court above ₹2 crore and to the Supreme Court above ₹5 crore, with exceptions for some cases such as fraud.
When the ITAT dismisses an income tax appeal
| Reason the ITAT dismissed | What you can do |
|---|---|
| Nobody appeared on the hearing dates | File a miscellaneous application to recall the order, showing why you could not attend |
| Appeal filed late with no condonation request | Refile with an affidavit explaining the delay |
| Department appeal below the monetary limit | Nothing needed; the dismissal stands in your favour |
| Mistake apparent in the order | Rectification under section 254(2) within 6 months from the end of the month of the order |
| Lost on merits | High Court appeal within 120 days, only on a question of law |
Appeals after the Income-tax Act, 2025
The 2025 Act keeps the same ladder: Commissioner (Appeals), then the Appellate Tribunal, then the High Court. The Income-tax Rules, 2026 renumber the appeal forms, so the form names you see on the portal may differ from Form 35 and Form 36. Orders that relate to AY 2026-27 and earlier still follow the 1961 Act provisions. Check the form the portal shows before you file, and read the wider changes on the Income-tax Act, 2025 page.
Before you file: practical checks
- Tax on returned income. The CIT(A) will not admit the appeal unless tax due on the income you declared is paid.
- Demand and stay. Filing an appeal does not stop recovery by itself. Ask the officer for a stay; paying a part of the disputed demand is often a condition.
- Narrow grounds. One ground per addition, stated plainly, works better than a long essay.
- Watch the portal. Hearing notices for faceless appeals come under e-Proceedings, not by post.
This explains the appeal process in general terms only. Deadlines are strict and rules get amended; for your own dispute, take advice from a chartered accountant or tax lawyer and check the portal.
Sources we checked
- Income-tax Act, 1961, sections 246A, 249 and 250
- Income-tax Act, 1961, sections 253, 254 and 260A
- Income-tax Rules, 1962, rule 45 and rule 47
- CBDT circular on monetary limits for department appeals
Frequently asked questions
What is Form 35 in income tax?
Form 35 is the appeal form against an order of the tax officer, such as an assessment, penalty or rectification order. It goes to the Commissioner (Appeals) and must be filed online within 30 days of receiving the order.
What are the income tax appeal fees for Form 35?
₹250 if assessed income is up to ₹1 lakh, ₹500 above ₹1 lakh up to ₹2 lakh, and ₹1,000 above ₹2 lakh. Appeals on orders not linked to income, such as a penalty, cost ₹250.
Can I file Form 36 directly without going to CIT(A)?
Normally no. Form 36 is for appeals against orders of the CIT(A) and a few other authorities. An ordinary assessment order goes to the CIT(A) first in Form 35.
What happens if the ITAT dismisses my income tax appeal?
It depends on why. A dismissal for non-appearance can be recalled through a miscellaneous application. A clear mistake can be rectified under 254(2). A loss on merits can go to the High Court only on a substantial question of law.
Can I appeal after the 30 day limit?
Yes, with a request to condone the delay. You must show a sufficient cause, and the CIT(A) decides whether to admit it, so file as early as possible.