Form 151 – Guidance Note

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

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 “₹"