Income Tax Form 151 (Earlier Form 28): Notice of Demand for Advance Tax

Form No. 151, introduced under the Income-tax framework aligned with the Income-tax Act, 2025, is a statutory notice of demand issued by the Assessing Officer requiring an assessee to pay advance tax based on estimated income for a tax year. It corresponds to earlier provisions (Form 28 under the 1962 Rules) and is governed by sections 289 and 407. The notice specifies estimated taxable income, advance tax payable, and instalment due dates, computed after considering deductions, set-offs, TDS/TCS, reliefs, and prior tax payments. It contains personal details, notice particulars, and a computation enclosure. The form aims to promote timely compliance, enable self-assessment, and reduce interest liabilities arising from underpayment or deferment. Issuance follows assessment of available income data by the Assessing Officer, and no documents are required from the assessee at this stage. Non-compliance may attract interest, while assessees retain the option to revise estimates if income projections change.

Income Tax Department
Ministry of Finance, Government of India

FAQs on Income Tax Form 151 (Earlier Form 28): Notice of demand under section 289 for payment of advance tax under section 407(2) or 407(5) of Income Act, 2025

Notice of demand under section 289 of the Act for payment of advance tax under section 407(2) or 407(5) of the Act

Q1: What is Form 151?

Ans: Form No. 151 is prescribed for issuing a notice of demand under section 289 of the Act requiring an assessee to pay advance tax in accordance with section 407(2) or section 407(5) of the Act, where the assessee is liable to pay advance tax on estimated income for the relevant tax year.

Q2: Who should issue Form 151?

Ans: Form 151 is the notice of demand issued by the assessing officer based on the estimate of advance tax payable by the assessee

Q3: What is the purpose of issuing notice in Form 151?

Ans: The purpose of Form 151 is to provide notice to the assessee as to:

• Estimate income subject to advance tax as per the computation of the assessing officer,
• Advance tax payable for the tax year by the assessee as per the computation of the assessing officer

Q4: What details are required to be provided in Form 151?

Ans:

Form 151 shall contain

• Personal information of the assessee, including name, address, PAN and contact details.
• Tax year to which the notice relates.
• Details of the Assessing Officer, including the name and address of the office issuing the notice.
• Reference to the provision under which the notice is issued, i.e., section 407(2) or 407(5) of the Act.
• Total amount of advance tax payable during the tax year, as determined by the Assessing Officer based on the computation enclosed with the notice.
• Instalments and due dates for payment of advance tax in accordance with the provisions governing advance tax.

Q5: What is meant by “income subject to advance tax” in Form 151?

Ans:

“Income subject to advance tax” refers to the estimated total income chargeable to tax, computed after:

• Aggregating income under all heads,
• Allowing set-off of eligible carried forward losses, and
• Allowing deductions admissible under the Act.

Q6: Are tax deductions and credits to be considered while computing advance tax in Form 151?

Ans:

Yes.

While computing advance tax payable, the assessing officer must take into account:

• Income on which tax is not payable or rebate is admissible,
• Tax deductible or collectible at source under relevant provisions,
• Relief on account of double taxation, if any, and
• Advance tax already paid during the tax year.

Q7: What are the consequences of under-estimation or non-payment of advance tax?

Ans:

Failure to correctly estimate or pay advance tax may result in levy of interest under the relevant provisions of the Act for short payment or deferment of advance tax instalments.

Q8: Why is Form 151 important?

Ans:

Form 151:

• Enables self-assessment and timely payment of advance tax,
• Reduces interest liability arising from defaults or deferment,
• Promotes voluntary compliance, and
• Facilitates smooth advance tax administration.

Guidance Note on Income Tax Form 151 (Earlier Form 28): Notice of demand under section 289 for payment of advance tax under section 407(2) or 407(5) of Income Act, 2025

Purpose

Form No. 151 is prescribed for issuing a notice of demand under section 289 of the Act requiring an assessee to pay advance tax in accordance with section 407(2) or section 407(5) of the Act.

The notice communicates to the assessee the estimated advance tax liability for the tax year, as determined by the Assessing Officer based on available information regarding the assessee’s income. The form also provides details of the instalments and due dates for payment of advance tax during the relevant tax year.

The notice facilitates timely payment of advance tax and ensures compliance with the provisions governing advance tax.

Who Should issue

Form No. 151 is issued by the Assessing Officer to an assessee who is liable to pay advance tax in accordance with the provisions of section 407 of the Act.

The notice is issued where the Assessing Officer determines that the assessee is required to pay advance tax based on the estimated income chargeable to tax during the relevant tax year.

Structure of Form

Form No. 151 broadly consists of the following parts:

1. Part A – Personal Information of the Assessee

2. Part B – Details of Notice

3. Enclosure – Order under section 407 containing computation of advance tax payable

The enclosure to the form provides the detailed computation of income subject to advance tax and the calculation of advance tax payable, including adjustments for taxes deductible at source, reliefs and advance tax already paid.

What are the documents required to issue the Form

Form No. 151 is a statutory notice issued by the Assessing Officer, and therefore no supporting documents are required to be furnished by the assessee at the stage of issuance of the notice.

However, the notice is accompanied by an enclosure containing the computation of advance tax payable under section 407 of the Act.

What is the process flow of filing Form

The process flow broadly involves the following steps:

1. The Assessing Officer examines the information available regarding the assessee’s income for the relevant tax year.

2. Based on such information, the Assessing Officer computes the income subject to advance tax and the advance tax payable in accordance with the provisions of the Act.

3. A notice of demand in Form No. 151 is prepared specifying the estimated advance tax payable and the instalments for payment.

4. The notice is issued to the assessee in accordance with the provisions governing service of notices under the Act.

5. The assessee is required to pay advance tax in the instalments specified in the notice within the prescribed due dates.

Outcome of Processed Form
Upon issuance of Form No. 151:

• The assessee becomes liable to pay advance tax in accordance with the instalments specified in the notice.
• The assessee may estimate a lower income and furnish a revised estimate of advance tax payable in accordance with the provisions of the Act.
• Failure to pay advance tax or deferment of instalments may result in levy of interest under the relevant provisions governing advance tax defaults.

Common Changes made across Forms

1. To make Forms system-friendly and enable e-filing and uploading, certain anomalies found due to grouping of Name, Designation, Address, PAN and Aadhaar number have been separated into different boxes.

2. Assessment / Financial / Previous year or years have been replaced with Tax year or years, wherever appearing in the Form/Annexure.

3. Sections, Clauses and Schedules changes as per the Income tax Act 2025.

4. Currency symbol “Rs.” has been replaced with “₹