India also suffered a seven-wicket defeat in the rescheduled fifth Test against England.
Besides the points penalty, India have also been fined 40 per cent of their match fee for the offence during their comprehensive loss to England at Edgbaston.
The docked points took India below Pakistan in the ICC World Test Championship standings. Now, they are holding the fourth spot with 75 points (point percentage of 52.08), just a shade below Pakistan's PCT of 52.38 per cent.
“According to Article 2.22 of the ICC Code of Conduct for Players and Player Support Personnel, players are fined 20 per cent of their match fee for every over their side fails to bowl in the allotted time.
“In addition, as per Article 16.11.2 of the ICC World Test Championship (WTC) playing conditions, a side is penalised one point for each over short,” ICC said in a statement.
“Since India fell short by two overs after time allowances were taken into consideration, they were docked two WTC points,” it added.
David Boon of the Emirates ICC Elite Panel of Match Referees imposed the sanction after on-field umpires Aleem Dar and Richard Kettleborough, third umpire Marais Erasmus and fourth umpire Alex Wharf levelled the charge.
Team India also suffered a seven-wicket defeat at the hands of England in Birmingham on Tuesday (July 5).
Heading into the final day, the hosts needed 119 more runs while chasing the target of 378 and they pulled it off without breaking a sweat in the first session itself.
Joe Root (76*) and Jonny Bairstow (72*) were unbeaten in the middle for England at the conclusion of fourth day's play, having already added 150 runs for the fourth wicket. The pair continued their domination over the Indian bowlers on Day 5, sharing an unbroken 269-run stand to take the home team over the line.
Both of them slammed centuries on the final day. While Root returned with a match-winning knock of 142 not out, Bairstow stayed unbeaten on 114.
With this victory, England also levelled the five-match Test series 2-2.
(ICC inputs)