Section 156 → Section 176
Notice of demand
Quick Answer
Section 156 of the Income Tax Act, 1961 (Notice of demand) corresponds to Section 176 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 156
Section 156 of the 1961 Act sets out the rules on notice of demand. A formal notice (Form 7) issued when tax, interest, or penalty is due after an order.
From 1st April 2026, the same subject sits at Section 176 of the Income-tax Act, 2025 — retained and renumbered as Section 176 of the Income-tax Act, 2025. Retained. Failure to pay within 30 days of this notice makes the assessee an 'Assessee in Default'.
For Section 156, the practical impact is rated Critical. Legal starting point for tax recovery.
Sec 156
Provision Summary
A formal notice (Form 7) issued when tax, interest, or penalty is due after an order.
Sec 176
Provision Summary
Retained. Failure to pay within 30 days of this notice makes the assessee an 'Assessee in Default'.
Key Changes & Highlights
- Notice is now served digitally with an embedded payment link.
Related Sections
Frequently Asked Questions
What is Section 156 of the Income Tax Act, 1961 about?
Section 156 of the Income Tax Act, 1961 covers notice of demand. A formal notice (Form 7) issued when tax, interest, or penalty is due after an order.
Which section replaces Section 156 in the Income-tax Act, 2025?
Section 156 of the Income Tax Act, 1961 maps to Section 176 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. Failure to pay within 30 days of this notice makes the assessee an 'Assessee in Default'.
What is the impact of the change to Section 156 under the new tax code?
The transition impact for Section 156 is rated Critical. Legal starting point for tax recovery.
What should I watch out for when Section 156 moves to the 2025 code?
Notice is now served digitally with an embedded payment link. These points are specific to Section 156 (Notice of demand).
Disclaimer: This mapping of Section 156 (Notice of demand) to Section 176 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 156 is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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