Income Tax Form 153 (Earlier 57): TRO Certificate & Demand notice for Recovery

Form 153 under the Income-tax Act, 2025 is a statutory Certificate and Notice of Demand issued by the Tax Recovery Officer (TRO) when tax arrears remain unpaid. It serves as a formal demand directing the taxpayer to clear outstanding dues—comprising tax, interest, penalty, fine, or other sums—within 15 days, failing which recovery proceedings may be initiated under sections 413 to 422. The form is event-driven and can cover multiple tax years and different heads of arrears. It includes structured details such as taxpayer identification and a comprehensive breakup of dues. Once issued, non-compliance can lead to coercive actions like attachment or sale of property, along with additional interest and recovery costs. The updated form introduces digital governance features such as DIN-based traceability, structured data fields, and improved clarity in reporting. Overall, Form 153 strengthens the recovery framework by ensuring transparency, enforceability, and timely compliance in cases of tax default.

Income Tax Department
Ministry of Finance, Government of India

FAQs on Income Tax Form 153 (Earlier Form 57): TRO Certificate & Demand notice for Recovery under section 413 or 414 of Income Tax Act, 2025

Form 153 – Frequently Asked Questions

Form 153 – Certificate & Notice of Demand by Tax Recovery Officer (TRO)

Q1. What is Form 153?

Ans: Form 153 is a statutory Certificate and Notice of Demand issued by the Tax Recovery Officer (TRO) under section 413 or section 414 of the Income-tax Act, 2025. It is issued when tax arrears (including tax, interest, penalty, fine, or any other sum) remain unpaid. The form authorises the TRO to initiate recovery proceedings in accordance with sections 413 to 422 of the Income-tax Act, 2025 and Rule 225 to the said Income-tax Rules, 2026.

Q2. Who issues Form 153?

Ans: Form 153 is issued by the Tax Recovery Officer (TRO). In cases covered under section 414, the issuing TRO acts on the basis of a recovery certificate forwarded by another TRO, who has sent a certified copy of the certificate specifying the arrears to be recovered.

Q3. Who receives Form 153?

Ans: The form is issued to the defaulting taxpayer from whom tax, interest, penalty, or fine is due. This may include individuals, companies, firms, or other entities.

Q4. What is the purpose of Form 153?

Ans: Form 153 serves the following purposes:

1. Acts as a formal certificate of arrears and notice of demand.

2. Directs the taxpayer to pay the dues within 15 days of receipt.

3. Warns that failure to pay will result in recovery proceedings under sections 413–422 and the Rule 225 to the said Income-tax Rules, 2026.

4. Provides a detailed breakup of arrears under various heads (tax, surcharge, additional tax, penalty, interest, fine, and other sums), further classified as regular, advance, and provisional amounts.

Q5. Is Form 153 a periodic form?

Ans: No, Form 153 is event-driven. It is issued only when a taxpayer defaults on payment of dues and the Assessing Officer forwards a certificate to the TRO. It can cover multiple tax years or different heads of arrears in a single notice.

Q6. What are the key sections of Form 153?

Ans: Form 153 consists of the following main parts:

Part A – Basic Information

• Name
• Permanent Account Number (PAN)
• Address
• Status (individual, company, firm, trust, etc.)
• Contact details (Mobile number and Email ID)

Part B – Details of Amount in Arrears

• Tax Year-wise breakup
• Income tax, surcharge, additional tax, penalty, interest, fine, interest under section 411(3), and any other sum
• Classification of each head into regular, advance, and provisional amounts
• Aggregate amount payable

Q7: What documents are required for issuing Form 153?

Ans: Since the form is issued by the TRO, the following departmental documents are required:

1. Certificate from AO specifying tax arrears.

2. Taxpayer Identification Records – PAN, Aadhaar, address, and contact details.

3. Arrear Computation Sheet – Breakup of tax, interest, penalty, fine, and charges outstanding.

Q8: How is the recovery process initiated after Form 153 is issued?

Ans:

1. The TRO issues Form 153 to the taxpayer specifying the amount due.

2. The taxpayer is required to pay the sum within 15 days.

3. If payment is not made, the TRO can initiate recovery proceedings, including attachment or sale of property under sections 413–422.

Q9: Can Form 153 cover multiple assessment years or dues?

Ans: Yes. Form 153 can cover arrears relating to multiple tax years. Separate rows are provided (Row 6 to Row 8, repeatable as Row 9) to capture year-wise details and the aggregate dues for each tax year.

Q10: What should a taxpayer do on receiving Form 153?
Ans:

1. Review the amounts in arrears

2. Ensure that the breakup of dues (tax, interest, penalty, fine) is accurate.

3. Pay the due amount within 15 days to avoid recovery proceedings.

4. If discrepancies exist, the taxpayer may contact the Assessing Officer (AO)/ Tax Recovery Officer (TRO)for clarification before payment.

Q11: What happens if the taxpayer fails to pay after receiving Form 153?

Ans: Failure to pay will trigger recovery proceedings under sections 413–422, which may include:

• Attachment of bank accounts or property
• Sale of movable or immovable property
• Recovery through legal enforcement actions
• Additional interest and costs may accrue

Q12: Is there any time limit to respond to Form 153?

Ans: Yes, the taxpayer must pay the arrears within 15 days from the receipt of the notice. Delayed payment attracts interest under section 411(3) and additional recovery costs.

Q14: Who can a taxpayer contact in case of discrepancies in Form 153?

Ans: The taxpayer should contact:

1. Assessing Officer (AO) – For errors in the recovery certificate.

2. Tax Recovery Officer (TRO) – For clarifications regarding the Form 153 notice and payment procedures.

Q15: Are there any consequences for incorrect or delayed payments related to Form 153? Ans: Yes, in addition to the arrears:

• Interest under Section 411(3) accrues daily from the due date.
• Recovery costs, charges, and expenses may also be added.
• Non-compliance can lead to coercive recovery actions under sections 413–422.

Q16: Is Form 153 applicable to individuals, companies, and entities?

Ans: Yes, it applies to all taxpayers (individuals, companies, HUFs, firms, AOPs, and other entities) from whom tax, penalty, interest, or other dues are outstanding.

Q17: Can Form 153 be updated or corrected once issued?

Ans: Corrections can only be made by the TRO or AO. The taxpayer cannot modify the form. Any discrepancy should be reported to the issuing authority.

Q18: What does “Status” mean in Form 153 and how should it be filled?

Ans:

“Status” refers to the legal constitution of the taxpayer. It must be selected from the categories specified in Note 3 of Form 153, such as Individual, Company, Firm, Trust, LLP, Government, Local Authority, etc., to correctly identify the nature of the defaulter for recovery purposes.

Guidance Note on Income Tax Form 153 (Earlier Form 57): TRO Certificate & Demand notice for Recovery under section 413 or 414 of Income Tax Act, 2025

Form 153 – Certificate & Notice of Demand by Tax Recovery Officer (TRO) Purpose

Form 153 is a statutory Certificate and Notice of Demand issued by the Tax Recovery Officer (TRO) under the provisions of section 413 or section 414 of the Income-tax Act, 2025, read with Rule No. 225 of the Income-tax Rules, 2026.

It serves as a formal demand notice to a taxpayer (individual, company, or other entity) against whom tax arrears are outstanding, and authorises the TRO to initiate recovery proceedings in accordance with the prescribed statutory provisions.

Who should issue / receive

Issued by:

• Tax Recovery Officer (TRO).
• In cases falling under section 414, the issuing TRO acts on the basis of a certificate forwarded by another TRO, along with a certified copy specifying the arrears to be recovered.

Issued to:

• A taxpayer (individual, company, firm, trust, LLP, government entity, etc.) from whom tax, surcharge, additional tax, penalty, interest, fine, or any other sum has become due and remains unpaid.

Once default occurs and a recovery certificate is drawn up and forwarded, the TRO issues Form 153 to initiate recovery proceedings.

Frequency & Due Dates

Form 153 is not a periodic form.

It is event-driven and is issued whenever a default occurs and recovery proceedings are required to be initiated.

• A single Form 153 may cover multiple tax years.
• It may include multiple heads of arrears, such as income tax, surcharge, penalty, interest, fine, or other sums.
• The taxpayer is required to pay the amount within 15 days from the receipt of the notice.

Structure of Form 153

Form 153 has been modernised and structured into clear and logical parts, consistent with digital governance requirements.

Part A – Basic Information

Captures essential taxpayer identification and contact details:

• Name (full name without abbreviations)
• Permanent Account Number (PAN)
• Address (structured format – flat/door, premises, street, locality, city/district, state, PIN/ZIP code)
• Status (Individual, Company, Firm, Trust, LLP, Government, etc., as specified in Note 3)
• Contact details – Mobile number (with country code) and Email ID

This structured capture improves accuracy in identification and communication.

Part B – Details of Amount in Arrears

Provides a tax year–wise detailed breakup of arrears under the following heads:

• Income Tax
• Surcharge
• Additional tax (u/s 270)
• Penalty (relevant section)
• Interest (relevant section)
• Fine (u/s 246)
• Interest under section 411(3) from the date the amount became due
• Any other sum

Each head is further classified into:

• Regular
• Advance
• Provisional

The form also provides for:

• Aggregate amount payable for each tax year
• Repetition of tax year–wise rows where arrears relate to multiple years

All amounts are to be filled in ₹ (Indian Rupees).

Operative Portion – Certificate & Notice of Demand

The operative portion of Form 153 contains:

• Certification that the specified sum has become due
• Reference to the Document Identification Number (DIN) and date of the recovery certificate
• Legal authority under section 413 or section 414 of the Income-tax Act, 2025
• Direction to pay the arrears within 15 days of receipt
• Warning that failure to pay will result in recovery proceedings under sections 413 to 422 and the Rule No. 225 of the Income-tax Rules, 2026.
• Liability for:
• Interest under section 411(3)
• Costs, charges, and expenses of recovery proceedings

The form is authenticated with the seal and signature of the Tax Recovery Officer.

Documents Required to Issue Form 153

Since Form 153 is issued by the TRO and not filed by the taxpayer, the following departmental records are required:

1. Recovery Certificate specifying arrears (from AO or another TRO, as applicable).

2. Taxpayer Identification Records – PAN, address, status, and contact details.

3. Arrear Computation Sheet – Detailed breakup of tax, surcharge, interest, penalty, fine, and other sums outstanding.

Filing Count

Form 153 is not a recurring or periodic form.

It is issued only upon default and only when recovery proceedings are required to be initiated by the Tax Recovery Officer.

Process Flow of Form 153

1. Default and Certification:

Upon failure of the taxpayer to pay dues within the prescribed time, a recovery certificate is prepared and forwarded to the TRO.

2. Issue of Form 153:

The TRO issues Form 153 specifying the amount in arrears, tax year–wise breakup, legal provisions, and the 15-day payment timeline.

3. Recovery Proceedings:

If payment is not made within the stipulated time, the TRO initiates recovery proceedings such as attachment or sale of property under sections 413–422.

Outcome of Form 153 Processing

For the Department (AO / TRO):

• Enables lawful and structured enforcement of recovery proceedings.
• Ensures traceability and auditability through DIN-based issuance.
• Facilitates real-time tracking of arrears and recoveries.

For the Taxpayer:

• Acts as the final statutory intimation before coercive recovery.
• Provides clear, tax year–wise and head-wise breakup of arrears.
• Enables timely compliance or rectification of discrepancies.

Brief Note on Broad or Qualitative Changes Incorporated

The finalised Form 153 reflects significant qualitative improvements over the earlier version:

1. Legal Alignment:

• Sections updated from 222–223 (1961 Act) to 413–414 (2025 Act).

2. Enhanced Identification:

• Structured capture of name, PAN, address, status, and contact details.

3. Digital Governance Enablement:

• DIN-based issuance for traceability and audit trail.
• Designed for e-generation and electronic service of notices.

4. Improved Data Presentation:

• Tax year–wise and head-wise breakup with regular/advance/provisional classification.
• Removal of obsolete identifiers (e.g., GIR number).

5. Uniform Terminology:

• Use of “Tax Year” instead of “Assessment Year”.
• Standardised currency notation as ₹.

Challenges and Solutions

Common Changes Across Forms

1. Statutory Alignment

• Sections updated from 222–223 (Income-tax Act, 1961) to 413–414 (Income-tax Act, 2025).
• Recovery provisions now refer to sections 413–422 and the Rule No. 225 of the Income-tax Rules, 2026.

2. Digital Traceability

• Introduction of Document Identification Number (DIN) for every Form 153.
• Designed for e-generation and e-service.

3. Structured Format

• Form divided into Part A (Basic Information) and Part B (Details of Amount in Arrears).
• Clear, logical, and system-friendly layout.

4. Enhanced Taxpayer Identification

• Detailed capture of Name (full), PAN, Address, Status, Mobile number, and Email ID.
• Status standardised with predefined categories (Individual, Company, LLP, Trust, etc.).

5. Tax Year–wise Reporting

• Use of “Tax Year” instead of “Assessment Year”.
• Provision to repeat rows for multiple tax years.

6. Detailed Break-up of Arrears

• Arrears classified head-wise:
  • Income tax, surcharge, additional tax, penalty, interest, fine, interest u/s 411(3), and other sums.
• Each head further split into Regular / Advance / Provisional.
• Aggregate payable amount auto-derivable.

7. Updated Interest Provision

• Interest referenced as section 411(3) (instead of section 220(2)).

8. Removal of Obsolete Elements

• GIR number
• Redundant narrative text streamlined.

9. Standardisation

• Currency standardised to ₹.
• Uniform terminology and notes added for clarity.

10. Improved Legal & Operational Clarity

• Explicit 15-day payment timeline retained with clearer consequences.
• Clear distinction between section 413 and section 414 cases (inter-TRO recovery).