Form 151 Income Tax Rules 2026 pdf download and Key points
FORM NO. 151
[see rule 222]
Notice of demand under section 289 of the Act for payment of advance tax under section 407(2) or 407(5) of the
Act
Under the new Income-tax Rules, 2026, Form No. 151 replaces the old Form 28. It is governed by Sections 289 and 407 of the Income-tax Act, 2025, and Rule 222 of the Income-tax Rules, 2026.
Here are all the key points regarding Form No. 151:
1. Purpose of the Form Form 151 is a statutory Notice of Demand issued by the Assessing Officer (AO) to an assessee. It requires the assessee to pay advance tax in accordance with section 407(2) or 407(5) of the Act. The notice communicates the estimated advance tax liability determined by the AO and provides the exact instalments and due dates for payment during the relevant tax year.
2. Applicability (Who Issues It)
- Issued by: The Assessing Officer.
- Issued to: Any assessee who, based on the information available to the AO, is deemed liable to pay advance tax on their estimated income chargeable to tax during the relevant tax year.
3. Process Flow and Requirements
- No Application Required: Because Form 151 is an AO-issued notice, there are no supporting documents that the assessee needs to furnish to trigger its issuance.
- Determination: The AO examines available information regarding the assessee’s income, computes the income subject to advance tax, determines the advance tax payable, and generates the notice with the required instalment schedule.
4. Structure of the Form The notice is structured into specific parts along with a mandatory enclosure:
- Part A (Personal Information): Captures the assessee’s Name, Address, PAN, and Contact Details.
- Part B (Details of Notice): Includes the tax year, details of the issuing AO, the specific provision applied (section 407(2) or 407(5)), the total amount of advance tax payable, and the specific instalments and due dates.
- Enclosure (Order u/s 407): A detailed computation of the advance tax payable. It details the “income subject to advance tax” by aggregating income under all heads, allowing for eligible carried-forward losses, and admissible deductions. It also accounts for any tax deducted/collected at source (TDS/TCS) and advance tax already paid.
5. Outcomes and Assessee’s Responsibilities
- Payment Liability: Upon issuance, the assessee becomes legally liable to pay the advance tax in the instalments specified in the notice.
- Option to Revise Estimate: If the assessee believes the AO’s estimation is too high, they have the statutory right to estimate a lower income and furnish a revised estimate of the advance tax payable.
- Consequences of Default: Failure to pay the advance tax or deferring the specified instalments will result in the levy of interest under the relevant provisions for advance tax defaults.
6. Key Updates in the 2026 Rules
- The form has been made more system-friendly to enable better e-filing and data uploading.
- Anomalies found in the old Form 28 due to the grouping of fields have been resolved; Name, Designation, Address, PAN, and Aadhaar number are now separated into distinct boxes.