Form 28 - Income Tax

Notice of Demand Under Section 156 of the Income-tax Act, 1961 for Payment of Advance Tax

Understanding Form 28

Form 28 is an essential document as it serves as a notice of demand under Section 156 of the Income-tax Act, 1961. Taxpayers are required to comply with this when payment of advance tax is due under sub-section (3) or sub-section (4) of section 210. For more information on the broader Income Tax regulations, visit our detailed page on the Income Tax Act.

Who Should Be Concerned?

This form is pertinent for individuals and entities that are obliged to pay advance tax. It is crucial for understanding the demand raised by the authorities. To see how this might affect different professions, you might consider insights for doctors, consultants, and engineers. Discover tailored tax filing solutions on our GST and ITR Filing page.

How to Respond to the Notice

Upon receiving a demand notice, taxpayers should promptly act to calculate their liabilities and pay the dues. They could use our Income Tax Calculator to estimate payments and learn more about the Form 26AS which reflects your tax credit balance.

Additional Resources

For comprehensive assistance, taxpayers should be aware of various income tax notices and how to handle them effectively, as outlined in our Income Tax Notices section. Additionally, understanding Section 80D deductions can offer tax benefits on your health insurance premiums.

Conclusion

Form 28 is a critical notice for taxpayers under the Indian tax system. Timely compliance is essential to avoid penalties. Whether you are a resident or non-resident Indian (NRI), understanding your obligations under Form 28 is vital to maintaining good standing with tax authorities. For further tax-related queries, our page on ITR filing offers valuable insights.

Back to Learn

Frequently Asked Questions

Common questions about Form 28 Income Tax Notice.

Form 28 is an Income Tax Notice of demand issued under section 156 of the Income Tax Act, 1961. It is a notice for the payment of advance tax under sub-section (3) or sub-section (4) of section 210 of the Act.

Form 28 is issued by the Income Tax Department when an assessee is required to pay advance tax but has either not paid or has paid less than the amount due. It serves as a demand notice for the payment of the remaining or unpaid advance tax.

Any individual, Hindu Undivided Family (HUF), or company whose estimated tax liability for the year exceeds a certain threshold is required to pay advance tax. The threshold varies based on the category of the assessee and their income sources.

Advance tax is typically calculated based on the estimated income and tax liability for the current financial year. The Income Tax Act prescribes specific due dates and installments for the payment of advance tax throughout the year.

Failure to pay advance tax or paying less than the required amount can result in the levying of interest under section 234B and 234C of the Income Tax Act. Additionally, the Income Tax Department may issue a notice of demand in Form 28 for the payment of the remaining or unpaid advance tax.

Upon receiving a Form 28 notice of demand, the assessee should pay the outstanding advance tax amount as per the demand notice within the specified time. If there are any contentions or objections regarding the demand, the assessee can file a response or appeal with the appropriate Income Tax authority.

Yes, non-compliance with a Form 28 notice of demand can attract penalties under the Income Tax Act. The penalties may vary depending on the specific circumstances and the amount of outstanding tax demand.

The Income Tax Act does not specify a fixed time period for responding to a Form 28 notice of demand. However, it is advisable to respond or pay the outstanding amount promptly to avoid any further interest or penalties.

Yes, an assessee can request an extension or installment facility for paying the demand raised in Form 28. Such requests are considered on a case-by-case basis by the Income Tax authorities, and they may grant an extension or allow payment in installments based on the assessee's financial circumstances.

While it is not mandatory, engaging a professional tax consultant or chartered accountant can be helpful in responding to a Form 28 notice of demand, especially if the case is complex or involves legal or technical issues. A professional can assist in drafting a suitable response, representing the assessee before the authorities, and ensuring compliance with the relevant provisions of the Income Tax Act.