Rules 178 and 179 of the Draft Income-tax Rules, 2026 lay down the prescribed procedural framework for applications relating to credit of tax deducted at source (TDS) and issuance of notices of demand. Rule 178 specifies that an assessee seeking credit of TDS under section 288(1) (Table: Sl. No. 11) must file an application in Form No. 102. This form is required to be furnished to the Director General of Income-tax (Systems) or a person authorised by him, who will thereafter forward the application to the jurisdictional Assessing Officer for necessary action. The rule thus creates a centralized electronic channel for processing TDS credit claims before they reach the Assessing Officer. Rule 179 prescribes the format for issuing a notice of demand under section 289, mandating that such notice be issued in Form No. 103. However, where the notice of demand arises pursuant to an order under section 407, it must be issued in Form No. 151. Together, these rules standardize documentation and procedural requirements relating to TDS credit applications and demand notices, promoting uniformity, clarity, and administrative efficiency in tax compliance and recovery processes.
Extract of Rule No. 178 And 179 of Draft Income-tax Rules, 2026
Rule 178
Application under section 288(1)(Table: Sl. No. 11) regarding credit of tax deduction at source.
(1) The application required to be made by the assessee under section 288(1)(Table: Sl. No. 11) shall be in Form No. 102.
(2) Form No. 102 shall be furnished to the Director General of Income-tax (Systems) or the person authorised by him.
(3) The Director General of Income-tax (Systems) or any person authorised by him shall forward Form No. 102 to the Assessing Officer.
Rule 179
Notice of demand under section 289 of the Act.
(1) The notice of demand under section 289 shall be in Form No. 103, subject to the provisions of sub-rule (2).
(2) The notice of demand under section 289 to be served upon the assessee in pursuance of an order under section 407 shall be in Form No. 151.
