Discuss Advance Tax Notice Form 151 (Form No. 28) with Expert
Received a statutory demand under Section 289 / 407? Our CA team helps you calculate your liability, file revised estimates, and avoid interest under Sections 234B & 234C.
CA Sagar Batra — Lead Tax Expert & Author
FCA | 15+ years in Direct Tax advisory. Former ICAI faculty member. Has personally handled 3,000+ advance tax notices and represented clients at Assessment proceedings across India.
What is Form 151 — Notice of Advance Tax?
Form 151 (Form No. 28) is a statutory demand notice issued by the Assessing Officer under Section 289 read with Section 407(2) or 407(5) of the Income-tax Act, 2025. It is the official replacement for the older Form 28 and communicates your advance tax payable for the relevant tax year, along with a detailed installment schedule.
Unlike a scrutiny notice, Form 151 does not mean you have done something wrong. The Income Tax Department issues it to ensure the government collects tax in periodic installments throughout the year rather than as a single year-end payment. It promotes self-assessment and helps you avoid surprise interest charges at the time of filing your return.
The notice includes key details such as your estimated taxable income, the total advance tax payable, due dates for installments, your personal information (name, PAN, address, contact), and the official details of the Assessing Officer issuing the demand. If your income changes during the year, you can submit a revised estimate using Form 153 and adjust your payments accordingly.
CA Sagar Batra says: “Form 151 is not a penalty or a red flag. It is a planning tool. Act on it promptly, revise your estimate if income changes during the year, and you will never pay a single rupee of unnecessary interest under 234B or 234C.”
What is Advance Tax?
Advance tax — also known as the pay-as-you-earn scheme — requires you to pay your income tax liability in parts throughout the financial year, rather than as a lump sum at year-end. The government introduced this system to ensure a steady revenue flow and to reduce the financial burden on taxpayers who would otherwise face a massive single payment in March.
Eligibility Rule: Any person whose total tax liability for the year is ₹10,000 or more (after adjusting for TDS) is required to pay advance tax. Note: Senior citizens aged 60 or above who do not operate a business are exempt.
Common income sources that trigger advance tax liability:
- Rent received from house property not fully covered by employer TDS
- Capital gains from selling shares, mutual funds, or property
- Interest income from fixed deposits or bonds
- Freelance or consultancy income above the threshold
- Lottery winnings or other windfall income
- Business profits estimated during the year
Form 28 vs Form 151 — What Changed?
With the enactment of the Income-tax Act, 2025 (effective from Tax Year 2025–26), the older Form 28 was officially retired. Form 151 under Rule 222 is its full replacement. The new form is significantly more digitized, pre-filled with PAN-linked data, and integrates directly with the e-Pay Tax portal for seamless online payment. Below is a complete comparison of the two forms across all key parameters.
| Parameter | Old Form 28 | New Form 151 (2025 Act) |
|---|---|---|
| Governing Act | Income-tax Act, 1961 | Income-tax Act, 2025 |
| Legal Section | Section 209A | Section 289 / 407 |
| Rule Reference | Rule 39 | Rule 222 |
| Digital Filing | Limited | Fully Digital |
| Revised Estimate Form | Form 28A | Form 153 |
| Pre-filled PAN Data | No | Yes |
| Online Payment Link | No | Direct e-Pay Tax |
| Enclosure (Computation) | Separate paper order | Integrated enclosure in same form |
| Status in 2026 | Retired | Active |
Who Receives Form 151?
The Assessing Officer issues Form 151 after reviewing your financial data and estimating that a significant advance tax liability remains unpaid or underpaid. The notice is prepared after carefully examining your previous returns, TDS data, and third-party financial information. Below is a breakdown by taxpayer type, along with the most common triggers for receiving the notice.
| Taxpayer Type | Receives Form 151? | Common Trigger |
|---|---|---|
| Salaried (only salary income) | Rarely | High investment/rental income not reflected in Form 16 |
| Salaried + rental or capital gains | Likely | Non-salary income not covered by employer TDS |
| Freelancers / Consultants | Yes | Tax liability exceeding ₹10,000 after TDS deduction |
| Businesses / Companies | Yes — Regularly | Large estimated profits; high revenue year |
| Senior Citizens (no business) | Exempt | Exempt under the Act if aged 60+ with no business income |
| Presumptive Scheme (44AD / ADA) | Modified Schedule | Single installment of 100% on or before 15 March only |
Why is Form 151 Important?
Ignoring official tax demand notices is never advisable. Form 151 carries special importance because it is a statutory demand — not a mere advisory. Failing to act triggers automatic interest under Sections 234B and 234C, which accumulate at 1% per month and can significantly increase your total tax outgo by the time you file your ITR.
Beyond avoiding penalties, the notice also serves as a useful planning instrument. By requiring periodic installment payments, it forces you to regularly review your estimated income throughout the year, improving your overall financial planning and reducing end-of-year surprises. If income drops after the notice is issued, you are fully entitled to revise your estimate downward and adjust remaining payments accordingly using Form 153.
Advance Tax Installment Schedule
You must clear your advance tax liability in four specific installments. Missing any of these deadlines leads to automatic interest charges under Section 234C on the shortfall for that period. The schedule below applies to most taxpayers. Those under the presumptive taxation scheme (Section 44AD / 44ADA) need only pay 100% in a single installment by 15 March.
| Installment | Due Date | Cumulative % to Pay | Amount (Example: ₹1,20,000 total) |
|---|---|---|---|
| 1st | On or before 15 June | Minimum 15% | ₹18,000 |
| 2nd | On or before 15 September | Minimum 45% (less paid) | ₹36,000 (balance after 1st) |
| 3rd | On or before 15 December | Minimum 75% (less paid) | ₹36,000 (balance after 2nd) |
| 4th (Final) | On or before 15 March | 100% of total liability | ₹30,000 (final balance) |
How to Calculate Advance Tax
The calculation is straightforward and does not require professional expertise for most taxpayers. Follow these steps to arrive at your advance tax liability:
- Step 1: Estimate your total income for the year — salary, rental income, interest, capital gains, business profits, etc.
- Step 2: Apply the current income tax slabs to your estimated total income to arrive at gross tax.
- Step 3: Deduct TDS that has already been or will be deducted by your employer or others.
- Step 4: If the balance tax exceeds ₹10,000, you are liable to pay advance tax.
- Step 5: Split the liability across the four installment dates as per the schedule above.
For example: Total estimated income ₹15,00,000 → Gross tax ₹1,50,000 → Less TDS ₹30,000 → Net advance tax payable = ₹1,20,000, split across four installments as shown in the table above.
Penalties for Non-Compliance
Two sections of the Income-tax Act, 2025 govern interest penalties related to advance tax. Both are applied automatically without any separate notice — they appear when you compute your final tax dues at the time of filing your ITR.
Section 234B — Short Payment
Applies when total advance tax paid is less than 90% of the assessed tax for the year. Interest accrues at 1% per month (or part thereof) from April 1 of the following financial year until the date of actual payment of the balance.
Section 234C — Late Installments
Applies when individual installment deadlines (June / September / December / March) are missed or underpaid. Interest at 1% per month is charged on the shortfall in each specific installment period separately.
How to Pay Advance Tax Online (2026)
The government has made the online payment process straightforward through the Income Tax e-filing portal. Follow these steps to pay your advance tax correctly and generate a valid Challan receipt.
- Visit: the Income Tax e-filing portal at incometax.gov.in and log in with your PAN and password.
- Navigate: to the e-Pay Tax section from the main dashboard or the Quick Links menu.
- Verify: Enter your PAN details and verify your identity with the OTP sent to your registered mobile number.
- Select: the Income Tax box and click Proceed to continue.
- Choose: the correct Assessment Year that matches your Form 151 notice.
- Payment Type: Under type of payment, select Advance Tax (100) from the dropdown.
- Details: Enter the installment amount for that due date and choose your preferred payment method — Net Banking, Debit Card, or UPI.
- Complete: Complete the payment and download the Challan receipt immediately. Keep it safe for ITR filing and for producing before the Assessing Officer if required.
Latest Updates (2026)
The tax landscape in India recently underwent significant changes. With the full implementation of the Income Tax Act 2025, several forms and rules were updated to streamline compliance and enhance digital integration.
The old Form 28 is now officially retired across all assessment proceedings. If you receive an advance tax notice in India today, it will be labelled as Form 151 under Rule 222. The new format is fully digitized, pre-filled with PAN-linked data, and allows taxpayers to read their computation and pay directly online through the e-Pay Tax portal. Always ensure you are following the 2026 compliance calendar to avoid surprise notices and interest charges.
Sample Form 151 — With Enclosure (Dummy Data)
Below is a representative sample of Form 151 as issued under Rule 222 of the Income-tax Act, 2025. All data shown below is for illustration purposes only and does not pertain to any real taxpayer.
| 4. Total income (basis of last assessment / return filed for year 2024–25) | ₹18,00,000 |
| 5. Income subject to advance tax | ₹15,00,000 |
| 6. Net agricultural income, if any | ₹ Nil |
| 7. Gross income-tax chargeable on income subject to advance tax | ₹1,50,000 |
| 8(i). Share of income from AOP/BOI on which tax already paid | ₹ Nil |
| 8(ii). Interest on income-tax free securities | ₹ Nil |
| 8(iii). Other items | ₹ Nil |
| 9. Total amount on which tax not payable & proportionate tax | ₹ Nil |
| 10. Less: TDS deductible under Sec. 392 / 393(1) / 393(2) [Table S. No. 1–9, 17] / 393(3) | ₹30,000 |
| 11. Net amount of income-tax | ₹1,20,000 |
| 12. Less: Amount on account of estimated double income-tax relief | ₹ Nil |
| 13. Balance payable | ₹1,20,000 |
| 14(i). Less: Tax already paid in tax year under Section 407 per previous notice | ₹ Nil |
| 14(ii). Date of service of previous demand notice | N/A |
Frequently Asked Questions
Can I revise my estimated income after receiving Form 151?
Yes. If your income drops or changes after the notice is received, you can submit a revised estimate to the Assessing Officer using Form 153. You may adjust the remaining installments accordingly. This revision can be made at any time before the final installment due date of 15 March.
Do salaried employees receive Form 151?
Usually not, because employers handle TDS for salary income and it is reflected in Form 16. However, if you have significant additional income from stock market gains, rental income, or interest from fixed deposits that is not covered by TDS, the Assessing Officer may issue Form 151 to you.
What happens if I overpay advance tax?
If your total advance tax payments exceed your actual final tax liability, the excess is treated as a refund. The Income Tax Department will credit it directly to your registered bank account along with applicable interest, after you file your Income Tax Return (ITR).
Is Form 151 applicable under the presumptive taxation scheme?
Yes, but with a modified schedule. Taxpayers who have opted for the presumptive scheme under Section 44AD or 44ADA are only required to pay one installment of 100% of their advance tax liability on or before 15 March. The June, September, and December installments do not apply to them.
What is the difference between interest under Section 234B and Section 234C?
Section 234B is triggered when total advance tax paid during the year is less than 90% of the final assessed tax — it charges 1% per month from April 1 of the following year. Section 234C is triggered when individual installment deadlines (June, September, December, March) are missed or underpaid — it charges 1% per month on the shortfall in each specific period, even if you eventually pay 100% by year end.
What if I ignore Form 151 completely?
Ignoring Form 151 can have serious financial consequences. The Income Tax Department will apply interest under Section 234B (for short payment) and Section 234C (for missed installments) at 1% per month each. These interest charges are computed automatically at the time of final assessment and ITR filing, and there is no waiver except in specific circumstances approved by the department.
Get Free Call with CA Expert
Our CA will call you within 2 business hours for a free consultation regarding Form 151.
Struggling with Tax Compliance?
Don't let interest penalties build up. Get professional assistance to calculate your advance tax, file your forms correctly, and stay compliant with the latest 2026 regulations.
Essential Tax Forms & Resources
Quick access to commonly used tax forms for your ITR filing and compliance needs.