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Income-tax Act, 2025 | Rule 222

Received an Advance Tax Notice? Understand Form 151

Received Form 151 (Earlier Form 28) under Section 289 and Section 407? Understand your advance tax demand, review the amount and payment deadlines, and explore the available response options with professional assistance.

Form 151 — PDF Copy Advance Tax Demand Notice | 2026
Download Form 151
Earlier Form 28 Section 289 / 407 Income-tax Rules, 2026

Important: Form 151 is issued by the Assessing Officer. If your estimated advance tax on current income is lower than the amount stated in the order, Form 152 may be relevant under Section 407(8), subject to applicable conditions.

Form 151 Guidance Understand your advance tax notice
Tax Liability Review Check estimated tax and eligible credits
Revised Estimate Understand available Form 152 options
Deadline Awareness Know payment dates and interest implications

What Is Form 151 — Notice of Advance Tax?

Form 151 (Earlier Form 28) is an official notice of demand issued by the Assessing Officer (AO) under Section 289 read with Section 407(2) or Section 407(5) of the Income-tax Act, 2025. Prescribed under Rule 222 of the Income-tax Rules, 2026, it informs a taxpayer about advance tax payable based on the Assessing Officer's estimate of income for the relevant tax year.

Unlike a scrutiny notice, Form 151 does not, by itself, mean that the taxpayer has made an error or committed a violation. Its primary purpose is to communicate the advance tax demand and the instalments payable within the relevant financial year.

Advance tax generally allows applicable income tax to be paid during the year rather than entirely after the year ends. Receiving Form 151 means you should review the estimated income, tax calculation, available tax credits and instalment deadlines before taking the appropriate action.

What Information Does Form 151 Contain?

Taxpayer details: Name, PAN, address and relevant identification information.
Estimated income: Income considered by the Assessing Officer for advance tax purposes.
Advance tax demand: The amount calculated as payable based on the AO's computation.
Payment schedule: Applicable instalment amounts and due dates for payment.

The law also recognises that your actual income during the year may differ from the income estimated by the Assessing Officer. For example, business profits may decline, rental income may change or other taxable income may be lower than originally expected.

If your estimated advance tax liability on current income is lower than the amount specified in the AO's order, Section 407(8) allows you to send an intimation using Form 152 (Earlier Form 28A), subject to the prescribed requirements.

Important Guidance for Taxpayers

Do not ignore Form 151. Verify the notice, examine the advance tax computation and check whether the amount is consistent with your current estimated income.

If the demand appears higher than your actual liability, review whether Form 152 is appropriate. If additional advance tax is payable, make the required payments by the applicable deadlines. Interest may apply to certain shortfalls or delayed instalments.

What Is Advance Tax?

Advance tax, commonly known as the pay-as-you-earn tax system, is the income tax paid during the financial year in scheduled instalments instead of paying the entire amount after the year ends.

It applies to eligible taxpayers whose estimated income tax liability reaches the prescribed threshold after considering applicable tax deductions, rebates and eligible TDS/TCS adjustments. Advance tax helps distribute tax payments throughout the year and reduces the possibility of a large outstanding tax amount when filing an Income Tax Return.

Advance Tax Eligibility Rule

Under Section 404 of the Income-tax Act, 2025, advance tax is generally payable when your estimated tax payable during the year is ₹10,000 or more, after adjusting the eligible tax deductible or collectible at source as provided under Section 405.

Senior citizen exemption: A resident individual aged 60 years or above who has no income from business or profession is generally not required to pay advance tax.

For example, a salaried employee may already have tax deducted by their employer. However, additional taxable income from rent, investments or independent work may increase their overall tax liability beyond the TDS already deducted.

सिर्फ सैलरी ही नहीं, अन्य कमाई पर भी एडवांस टैक्स लागू हो सकता है। The requirement depends on your total estimated tax liability, not simply on having a particular income source.

Common Income Sources That May Create Advance Tax Liability

The following types of income may increase your estimated tax liability if sufficient tax has not already been deducted or paid.

Rental Income

Taxable income earned from residential or commercial property that is not fully covered by TDS.

Capital Gains

Taxable gains from selling shares, mutual funds, land or other capital assets.

Interest Income

Taxable interest from fixed deposits, savings accounts, bonds or other investments.

Freelance & Consultancy

Taxable income from professional services, consultancy, gig work or independent projects.

Business Profits

Estimated taxable profits from trading, manufacturing, services or other business activities.

Other Taxable Income

Taxable lottery winnings, dividends and other income not adequately covered by tax deduction at source.

Important: Having any of these income sources does not automatically mean advance tax is payable. Your total estimated liability, applicable tax regime, exemptions, rebates and eligible TDS/TCS adjustments must be considered. The rules also provide specific treatment for certain taxpayers using presumptive taxation schemes.

Form 28 vs Form 151 — What Changed?

The Income-tax Act, 2025 came into force on 1 April 2026, introducing updated forms and references for income tax compliance. Form 151 (Earlier Form 28) is the prescribed notice of demand for advance tax under the new framework. It serves a similar legal purpose to the earlier Form 28, but follows the revised provisions of the new Act and Income-tax Rules, 2026. Here's how the two forms compare.

Comparison Form 28 (Earlier) Form 151 (New)
Governing Law Income-tax Act, 1961 Income-tax Act, 2025
Applicable Period Earlier tax periods governed by the 1961 Act Tax Year 2026–27 onwards, as applicable
Legal Provisions Section 156 read with Section 210(3)/(4) Section 289 read with Section 407(2)/(5)
Prescribed Rule Rule 38 Rule 222
Main Purpose Notice of demand for payment of advance tax Notice of demand for payment of advance tax
Issuing Authority Assessing Officer Assessing Officer
Payment Details Advance tax amount and applicable instalments Advance tax demand and applicable instalment details
Lower Tax Estimate Form 28A under the applicable earlier provisions Form 152 under Section 407(8) and Rule 223
Status in 2026 Relevant for earlier periods, subject to transitional provisions Prescribed under the Income-tax Rules, 2026

Governing Law

Form 28 Income-tax Act, 1961
Form 151 Income-tax Act, 2025

Applicable Period

Form 28 Earlier periods under the 1961 Act
Form 151 Tax Year 2026–27 onwards

Legal Provisions

Form 28 Section 156 with Section 210(3)/(4)
Form 151 Section 289 with Section 407(2)/(5)

Prescribed Rule

Form 28 Rule 38
Form 151 Rule 222

Main Purpose

Form 28 Advance tax demand notice
Form 151 Advance tax demand notice

Issuing Authority

Form 28 Assessing Officer
Form 151 Assessing Officer

Payment Details

Form 28 Tax amount and applicable instalments
Form 151 Tax demand and instalment details

Lower Tax Estimate

Form 28 Form 28A under earlier provisions
Form 151 Form 152 under Section 407(8)

Status in 2026

Form 28 Relevant to earlier tax periods
Form 151 Prescribed under Rules, 2026

Who Receives Form 151?

Form 151 (Earlier Form 28) may be issued by the Assessing Officer to a taxpayer who is required to pay advance tax based on the officer's estimate of taxable income. The estimate may be based on available information, including previously assessed income and other relevant records. Not every person who owes advance tax receives Form 151. Taxpayers are generally responsible for estimating and paying advance tax themselves.

Taxpayer Type Advance Tax Position Circumstances Relevant to Form 151
Salaried Employees Depends on TDS Advance tax may be payable if salary TDS and other eligible tax credits do not cover the estimated liability.
Salaried with Other Income May Be Liable Additional capital gains, rental income or interest may increase the tax payable beyond available TDS credits.
Freelancers & Consultants May Be Liable Estimated tax on professional income may remain payable after eligible TDS/TCS adjustments.
Business Owners & Companies Depends on Tax Liability Estimated taxable business profits may result in advance tax liability. An AO may issue Form 151 where statutory conditions are satisfied.
Resident Senior Citizens Without Business or Professional Income Exempt Resident individuals aged 60 or above during the tax year, with no income chargeable under business or profession, are exempt from advance tax.
Eligible Presumptive Taxation Scheme Taxpayers Special Payment Schedule Eligible taxpayers declaring income under the specified presumptive schemes generally pay 100% of advance tax by 15 March.
Non-Resident Individuals May Be Liable Income taxable in India may create advance tax liability after considering applicable tax provisions and eligible source deductions.

Salaried Employees

Depends on TDS

Advance tax may arise if salary TDS and eligible credits do not cover the estimated tax liability.

Salaried with Other Income

May Be Liable

Capital gains, rental income or interest may increase liability beyond the tax already deducted.

Freelancers & Consultants

May Be Liable

Professional income may create advance tax liability after eligible TDS/TCS adjustments.

Business Owners & Companies

Depends on Tax Liability

Estimated taxable business profits may create an advance tax obligation. Form 151 may be issued by the AO.

Resident Senior Citizens

Exempt - Subject to Conditions

Resident individuals aged 60+ without business or professional income are exempt from paying advance tax.

Presumptive Taxation

Special Payment Schedule

Eligible presumptive taxpayers generally pay the full advance tax liability by 15 March.

Non-Resident Individuals

May Be Liable

Income taxable in India may create an advance tax obligation after eligible tax credits and deductions.

Why Is Form 151 Important?

Form 151 (Earlier Form 28) is an official notice of demand for payment of advance tax, issued by the Assessing Officer under Section 289 read with Section 407(2) or 407(5) of the Income-tax Act, 2025. Unlike a general tax reminder, it communicates a formal advance tax demand based on the Assessing Officer's estimate.

Receiving Form 151 does not automatically mean you have committed a tax violation. However, ignoring the notice or failing to review the demand can result in missed payment obligations, avoidable interest and complications in managing your tax liability.

Advance tax shortfalls or delayed instalments may attract interest under Section 234B (Now Section 424) and Section 234C (Now Section 425), depending on the applicable conditions. The relevant interest calculations depend on the amount of shortfall, payment dates and statutory rules.

Four Reasons You Should Review Form 151

Understand Payment Deadlines

Review the advance tax amount and applicable instalment dates mentioned in the notice so that payments can be planned on time.

Verify the Tax Calculation

Compare the Assessing Officer's estimate with your expected income, eligible deductions, tax credits and advance tax payments already made.

Reduce Interest Risk

Timely and sufficient advance tax payments may help reduce interest arising from payment defaults or deferred instalments, wherever applicable.

Review a Lower Income Estimate

If the AO's advance tax estimate is higher than your reasonable current estimate, Form 152 may provide a prescribed way to intimate the difference.

Form 151 is also relevant for financial and tax planning. Estimating your taxable income during the year helps you set aside sufficient funds, consider available tax credits and avoid a large unexpected payment when filing your Income Tax Return.

For example, if your business profits decline or your estimated taxable income changes after receiving a notice, it is important to reassess the amount payable. However, a reduction in estimated income does not automatically cancel the Assessing Officer's demand or waive interest already applicable.

Advance Tax Installment Schedule

Under Section 408 of the Income-tax Act, 2025, taxpayers who are liable to pay advance tax generally make payments in four instalments during the financial year. The cumulative payment targets are 15%, 45%, 75% and 100%, due by 15 June, 15 September, 15 December and 15 March respectively.

If you have received Form 151 (Earlier Form 28), review the advance tax demand and the instalments falling due after the notice is served. Eligible presumptive taxpayers follow a special payment schedule.

Advance Tax Payment Example

Estimated Total Advance Tax ₹1,20,000

Example assumes the advance tax liability remains unchanged and each earlier instalment is paid at the minimum required amount on time.

Installment Due Date Cumulative Payment Example Amount
1st 15 June 15% ₹18,000 cumulative ₹18,000 First instalment
2nd 15 September 45% ₹54,000 cumulative ₹36,000 After ₹18,000 already paid
3rd 15 December 75% ₹90,000 cumulative ₹36,000 After ₹54,000 already paid
4th 15 March 100% ₹1,20,000 cumulative ₹30,000 Final balance

1st Installment

15 June
Cumulative Target 15%
Amount to Pay ₹18,000

Minimum total paid by this date: ₹18,000.

2nd Installment

15 September
Cumulative Target 45%
Amount to Pay ₹36,000

Cumulative ₹54,000, less ₹18,000 previously paid.

3rd Installment

15 December
Cumulative Target 75%
Amount to Pay ₹36,000

Cumulative ₹90,000, less ₹54,000 previously paid.

4th Installment

15 March
Cumulative Target 100%
Amount to Pay ₹30,000

Final ₹30,000 completes the ₹1,20,000 liability.

Want to estimate your own payment? You can calculate your advance tax using the Easy Return calculator. Review your estimated income, applicable tax regime and tax credits before deciding the amount to pay.

How to Calculate Advance Tax

To calculate advance tax, estimate your taxable income for the relevant tax year, calculate the applicable income tax and adjust eligible tax credits. Under Section 405 of the Income-tax Act, 2025, the computation is based on your estimated current income and applicable tax provisions.

Follow these five steps to estimate how much advance tax you may need to pay.

01

Estimate Your Annual Income

Add your expected salary, taxable rental income, capital gains, interest, business profits, professional income and other taxable receipts for the year.

02

Determine Taxable Income

Consider applicable exemptions, losses, deductions and other adjustments allowed under your chosen or applicable tax regime. Taxable income may differ from total gross receipts.

03

Calculate Estimated Income Tax

Apply the relevant tax slabs or special tax rates. Consider eligible rebates, surcharge and Health and Education Cess, wherever applicable.

04

Adjust TDS, TCS and Eligible Credits

Subtract applicable TDS/TCS credits and relevant tax relief or credits, as permitted by the law. If the resulting advance tax liability is ₹10,000 or more, advance tax generally becomes payable.

05

Calculate the Remaining Instalments

Apply the appropriate instalment schedule and deduct advance tax already paid. For most taxpayers, the cumulative targets are 15%, 45%, 75% and 100%. Eligible presumptive taxpayers follow the applicable special payment schedule.

Basic Advance Tax Formula

Estimated Tax Liability − Eligible TDS/TCS − Other Applicable Tax Credits = Advance Tax Payable

This is a simplified formula. Estimated liability must be calculated after considering applicable rates, rebates, surcharge and cess. Advance tax already paid reduces the remaining amount to be deposited.

Example: Advance Tax Calculation

Illustrative example based on an assumed tax liability, not a calculation from a specified gross income.

Assumed computed annual income tax (including applicable cess) ₹1,50,000
Less: Estimated eligible TDS − ₹30,000
Other applicable credits ₹0
Estimated Advance Tax Payable ₹1,20,000

In this example, the estimated advance tax payable is ₹1,20,000. For a taxpayer following the standard four-instalment schedule, this amount is allocated according to the payment percentages and dates explained in the preceding section.

Interest on Late or Short Advance Tax Payments

Failure to pay sufficient advance tax or delays in paying prescribed instalments may result in interest under the Income-tax Act, 2025. Two provisions are particularly relevant: Section 424 for defaults in advance tax payment and Section 425 for deferment of instalments.

These are statutory interest provisions, not separate penalties. Interest generally arises when the conditions specified in the law are met. It can increase the total amount payable when you file your Income Tax Return.

Default in Advance Tax Payment

Earlier Section 234B

1% per month or part of a month

Section 424 generally applies when a taxpayer required to pay advance tax has either not paid it or paid less than 90% of the assessed tax.

Interest is calculated on the applicable tax shortfall for the prescribed period, generally beginning on 1 April following the tax year.

When does it apply?

For example, if assessed tax after eligible credits is ₹1,00,000 and advance tax paid is only ₹70,000, Section 424 interest may be applicable.

Deferment of Advance Tax Instalments

Earlier Section 234C

1% monthly rate, subject to prescribed periods

Section 425 generally applies when advance tax paid by the specified instalment dates is lower than the statutory requirement.

For regular taxpayers, interest is generally calculated for three months for the June, September and December instalment shortfalls, and one month for the March shortfall, subject to applicable conditions.

Important exception

Certain income, including qualifying capital gains, may receive special treatment where the income could not reasonably be estimated earlier and the required tax is paid in the prescribed manner.

Example: Interest Under Section 424

Assume the following figures for a taxpayer who was required to pay advance tax:

Assessed tax after eligible credits ₹1,00,000
Advance tax already paid ₹70,000
Advance tax shortfall ₹30,000
Assumed interest period 3 months

Illustrative interest: ₹30,000 × 1% × 3 months = ₹900.

This simplified illustration assumes an unchanged outstanding shortfall for three chargeable months. Actual interest depends on payment dates, assessment details, statutory adjustments and other applicable provisions. Any Section 425 interest would need to be calculated separately.

How to Pay Advance Tax Online in 2026

You can pay advance tax online through the official Income Tax Department's e-Pay Tax service. The facility allows taxpayers to generate a challan, select an available payment mode and download a receipt after successful payment.

You can use the service either after logging into your income tax account or through the pre-login e-Pay Tax facility using PAN and mobile OTP verification.

Official Income Tax e-Filing Portal www.incometax.gov.in
Visit Official Portal

Step-by-Step Process to Pay Advance Tax

01

Visit the Income Tax Portal

Open the official e-Filing portal at incometax.gov.in. Select e-Pay Tax from Quick Links, or log in and navigate to e-File → e-Pay Tax.

02

Enter PAN and Verify OTP

If using the pre-login service, enter and confirm your PAN, provide an accessible mobile number and verify the OTP. Logged-in taxpayers can proceed through their account.

03

Select the Applicable Income-tax Act

Choose the applicable Act according to the tax period. Select the Income-tax Act, 2025 for Tax Year 2026–27 onwards, or the 1961 Act for applicable earlier assessment years.

04

Choose Income Tax and the Correct Year

Select the relevant Income Tax or Corporation Tax payment category, as applicable. Choose the correct Tax Year or Assessment Year matching the liability.

05

Select Advance Tax (100)

Under Type of Payment or Minor Head, select Advance Tax (100). Do not confuse it with Self-Assessment Tax (300) or Regular Assessment Tax (400).

06

Enter the Tax Payment Amount

Enter the advance tax amount and complete the applicable tax breakup fields. Review the amount against your estimated tax liability and any Form 151 notice you have received.

07

Choose a Payment Method

Select an available method such as net banking, eligible debit card, payment gateway, RTGS/NEFT or bank-counter payment. Availability depends on the selected mode and authorised bank.

08

Confirm Payment and Save Receipt

Verify your PAN, tax year, payment type and amount before confirming. Complete the payment and download the challan receipt after successful confirmation.

Which Income-tax Act Should You Select?

EARLIER PERIODS Income-tax Act, 1961

For Assessment Year 2026–27 and earlier assessment years, as applicable.

FROM 1 APRIL 2026 Income-tax Act, 2025

For Tax Year 2026–27 onwards, as applicable under the new tax framework.

What Should You Check on Your Tax Challan?

After successful advance tax payment, verify the details on your challan receipt before storing it for your records.

PAN: Correct taxpayer identification
Tax Period: Correct Tax Year or Assessment Year
Payment Type: Advance Tax (100)
Amount: Correct tax amount deposited
Payment Date: Actual successful payment date
CIN: Challan Identification Number after successful payment

CRN vs CIN: A Challan Reference Number (CRN) is generated when creating the payment challan. A Challan Identification Number (CIN) is generated after successful payment. Merely generating a CRN does not mean the tax has been paid.

Latest Form 151 Updates (2026)

India's income tax framework changed significantly in 2026 with the implementation of the Income-tax Act, 2025 and Income-tax Rules, 2026. The changes introduced updated statutory references, revised form numbers and simplified compliance documentation. Here are the important developments affecting Form 151 advance tax notices.

Income-tax Act, 2025 Effective From 1 April 2026

The Central Board of Direct Taxes confirmed that the Income-tax Act, 2025 came into force on 1 April 2026. The Income-tax Rules, 2026 were notified on 20 March 2026. These changes introduced new forms and statutory references for the applicable tax periods.

FORM UPDATE

Form 28 Is Now Form 151

Under the new framework, Form 151 (Earlier Form 28) is the prescribed notice of demand for advance tax under Section 289 read with Section 407(2) or 407(5). It is prescribed by Rule 222 of the Income-tax Rules, 2026.

RESPONSE PROCEDURE

Form 152 for a Lower Tax Estimate

Form 152 (Earlier Form 28A) is prescribed under Rule 223. Where a taxpayer considers the Assessing Officer's advance tax estimate excessive, Section 407(8) provides a procedure for intimating a lower revised estimate, subject to the conditions.

TRANSITION RULE

Earlier Tax Proceedings Continue

The Income-tax Act, 1961 has been repealed, but Section 536 of the new Act preserves specified rights, liabilities and proceedings relating to earlier tax periods. Therefore, an old form or notice does not automatically become invalid after 1 April 2026.

TAXPAYER ACTION

Verify Your Notice and Tax Year

When you receive an advance tax notice, check the tax year, PAN, issuing authority, demand amount and payment instalments. Confirm which Act applies before paying or submitting a revised estimate. Do not assume that every notice issued in 2026 must use Form 151.

Official Government References

Verify the latest applicable provisions using the Income-tax Act, 2025 and Rules, 2026 , the Form 151 guidance , and Rule 223 for Form 152 .

Sample Form 151 — Notice With Computation Enclosure

The following is a simplified, illustrative example of Form 151 (Earlier Form 28), prescribed under Rule 222 of the Income-tax Rules, 2026. It helps you understand the taxpayer details, advance tax demand, computation enclosure and instalment information associated with the notice.

Illustrative Sample Only: All names, identification details, addresses, figures and notice information shown below are fictional. This is an educational representation, not an official notice or a substitute for the notified government form.

RULE 222 | INCOME-TAX RULES, 2026

FORM NO. 151

Notice of demand under Section 289 of the Income-tax Act, 2025 for payment of advance tax under Section 407(2) or Section 407(5).

PART A Personal Information

1. Name of Taxpayer Mr. Ramesh Kumar Sharma
3. Permanent Account Number XXXXX0000X (Placeholder)
2. Address Example House, Sample Road, Gurugram, Haryana - 122001
4. Mobile Number Notional / Dummy Number
4. Email Address taxpayer@example.com
5. Tax Year 2026–27

PART B Details of Notice

6. Assessing Officer Illustrative Assessing Officer
7. Office Address Illustrative Income Tax Office, Gurugram
8. Section of the Act Section 407(2)
Date of Issue 12 April 2026
9. Total Sum Payable During the Tax Year ₹1,20,000

ENCLOSURE Order Under Section 407

Illustrative Advance Tax Computation

The notified enclosure contains taxpayer identification and numbered computation fields. This simplified example summarises those fields and uses assumed tax amounts rather than calculating tax from a specific income under a particular regime.

Computation Particulars Amount
Row 4: Total income based on relevant earlier assessment or return ₹18,00,000
Row 5: Income subject to advance tax ₹15,00,000
Row 6: Net agricultural income, if any Nil
Row 7: Assumed gross income tax chargeable ₹1,50,000
Row 8: Income or items eligible for specified non-taxability or rebate Nil
Row 9: Proportionate tax on non-taxable items Nil
Row 10: Less eligible tax deductible at source − ₹30,000
Row 11: Net amount of income tax ₹1,20,000
Row 12: Less estimated double income-tax relief Nil
Row 13: Balance payable ₹1,20,000
Row 14: Less amount paid under an earlier notice, if any Nil
Row 15: Total Amount of Tax Payable ₹1,20,000

Figures are illustrative. The actual tax computation depends on the applicable tax regime, income character, deductions, rebates, surcharge, cess and other relevant credits. The official enclosure includes additional fields and subfields.

ROW 10 Details of Advance Tax Instalments

Illustrative payment breakup assuming the standard four-instalment schedule and no earlier advance tax payments.

By 15 June 15% ₹18,000 Cumulative ₹18,000
By 15 September 45% ₹36,000 Cumulative ₹54,000
By 15 December 75% ₹36,000 Cumulative ₹90,000
By 15 March 100% ₹30,000 Cumulative ₹1,20,000

Place: Gurugram
Date: 12 April 2026

Signature of Assessing Officer

Not signed — illustrative sample

Want to View the Prescribed Form 151?

Access the PDF copy of Form 151 for reference and compare its fields with this example.

View Form 151 PDF

Frequently Asked Questions

Find answers to common questions about Form 151 advance tax notices, revised estimates, refunds, payment deadlines and interest.

Can I revise my estimated income after receiving Form 151?

Yes. If your estimated advance tax liability is lower than the amount determined by the Assessing Officer, you may intimate a lower estimate using Form 152 (Earlier Form 28A) under Section 407(8) of the Income-tax Act, 2025.

Form 152 is prescribed under Rule 223 of the Income-tax Rules, 2026. You should provide a reasonable explanation and supporting computation. Follow the applicable procedural requirements and timelines rather than assuming that every revision can be submitted until 15 March.

Do salaried employees receive Form 151?

Yes, they may. Salaried employees generally have income tax deducted by their employers, but TDS may not cover their complete annual tax liability.

Additional income from capital gains, house property, fixed deposit interest or other taxable sources may result in advance tax liability. The Assessing Officer can issue Form 151 where the applicable statutory conditions are satisfied.

Salary TDS details may be available through Form 16 ( Now Form 130 ), as applicable to the relevant tax period.

What happens if I overpay advance tax?

If your total eligible tax payments, including advance tax and TDS/TCS, exceed your final income tax liability, you may be entitled to an income tax refund.

The refund is determined during return processing or other applicable proceedings. Any refund interest is calculated only where the statutory conditions are met.

Ensure that your Income Tax Return is correctly filed and verified, and that your bank account is validated for receiving refunds.

Is Form 151 applicable to taxpayers under presumptive taxation?

Eligible taxpayers using presumptive taxation may still have an advance tax obligation, and Form 151 may be relevant where applicable.

Under Section 408(2) of the Income-tax Act, 2025, taxpayers declaring income under specified schemes in Section 58(2), Table Sl. Nos. 1 and 3 (Earlier Sections 44AD and 44ADA) generally pay their entire advance tax liability on or before 15 March.

They follow the prescribed single-instalment schedule instead of the standard four-instalment schedule.

What is the difference between interest under Section 234B and 234C?

Section 234B (Now Section 424) relates to default or insufficient advance tax payment. It generally applies where required advance tax is not paid or is less than 90% of assessed tax. Interest is generally calculated at 1% per month or part thereof for the applicable period.

Section 234C (Now Section 425) concerns deferment of advance tax instalments. Interest depends on the amount of shortfall, prescribed instalment dates, calculation periods and applicable exceptions.

Both provisions may apply to the same taxpayer, depending on the facts.

What happens if I completely ignore Form 151?

Ignoring an official Form 151 advance tax demand can result in missed payment obligations and additional interest, where the relevant statutory conditions are satisfied.

Interest under Section 424 or Section 425 may apply independently of whether the taxpayer received or responded to the notice. Additional recovery or compliance consequences depend on the applicable legal provisions and circumstances.

If you believe the demand is incorrect or excessive, verify the computation and consider the appropriate Form 152 procedure rather than simply ignoring the notice.

Is Form 151 the same as an income tax scrutiny notice?

No. Form 151 is specifically a notice of demand for advance tax issued under Section 289 read with Section 407(2) or 407(5).

A scrutiny or assessment notice serves a different statutory purpose. Receiving Form 151 does not, by itself, establish wrongdoing or indicate that your return has been selected for scrutiny.

Do I need to pay advance tax if I have not received Form 151?

Yes, if you are liable under the advance tax provisions. Form 151 is not a prerequisite for paying advance tax.

Under Section 404 of the Income-tax Act, 2025, advance tax is generally payable when the calculated amount is ₹10,000 or more, subject to applicable exemptions and adjustments.

Taxpayers should estimate their income and pay advance tax independently where required, without waiting for a notice from the Assessing Officer.

Easy Return Tax Assistance

Need Help with Your Form 151 Advance Tax Notice?

Received an advance tax demand and unsure what to do next? Easy Return can help you review your notice, understand your estimated tax liability and identify the appropriate next steps, including payment or a lower-estimate intimation where applicable.

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CA Sagar Batra - Chartered Accountant
Written & Reviewed By

CA Sagar Batra

ICAI Registered Chartered Accountant · 10+ Years of Professional Experience · 12,000+ Tax Filings

Chartered Accountant with experience in taxation, compliance and business advisory. His work covers Income Tax, GST, TDS, tax notices, business compliance and financial documentation for individuals and businesses across India.

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✓ Content reviewed for tax accuracy, practical relevance and compliance context.