Difference in Form No 7 Draft Form No. 103 and Form No 103 Income-tax Rules1962
Based on the Draft Income-tax Rules, 2026 (specifically Draft Form No. 103) and the previous Income-tax Rules, 1962 (specifically Form No. 7), here is the comparison of the Notice of Demand.
Comparison: Notice of Demand (Form 7 vs. Draft Form 103)
| Feature | Old Rules (1962) | New Rules (2026) |
|---|---|---|
| Form Number | Form No. 7 | Draft Form No. 103 |
| Governing Section | Issued under Section 156 of the Income-tax Act, 1961. | Issued under Section 289 of the Income-tax Act, 2025. |
| Payment Timeline | Generally 30 days from service of notice. Allows for a shorter period with previous approval from the Joint Commissioner, | Retains the 30-day period. Allows for a shorter period with previous approval from the Joint Commissioner,. |
| Interest Provisions | simple interest at 1% for every month or part of a month to be Charged under Section 220(2). | Explicitly mentions liability to pay simple interest at 1% for every month or part of a month under Section 411(3) to 411(6). |
| Payment Modes | Traditional methods (Cheque, Challan). | Digital First: Explicitly instructs to pay digitally by logging into the e-filing portal. Cheques must be submitted with a challan downloaded from the portal,. |
| Appeals | Appeal to Commissioner (Appeals). | Specifies appeal to Joint Commissioner (Appeals) or Commissioner (Appeals) using Form No. 35 within 30 days,. |
| Tribunal Appeals | Appeal to ITAT. | Specifies appeal to the Income-tax Appellate Tribunal using Form No. 115 within 60 days. |
| Pre-filled Data | Manual/System generated. | Note 5 explicitly states that “Some of the Information in the form would be pre-filled to the extent possible”. |
| Status Categories | Standard categories. | Detailed status codes including Limited Liability Partnership (LLP), Artificial Juridical Person, and Trust. |
| Recovery Sections | Sections 222 to 227, 229, 232. | Lists recovery proceedings under sections 413 to 417, 419, and 421 of the new Act. |