Income-tax Act, 1961Section 156
- AO serves notice of demand after an order
- Intimation under 143(1)/200A deemed a notice of demand
- Start-up ESOP tax payable on deferred dates
Applies to FY 2025-26 (AY 2026-27) and earlier years.
IT Act 1961 → 2025 / Section 156
Returns & assessmentSection 156 → Section 289
Notice of demand for tax, interest, penalty or other sums
Section 156 of the old Income-tax Act, 1961 · new section 289 under the Income-tax Act, 2025
New reference Section 289
Income-tax Act, 2025Section 289
- Same, now section 289
- Intimations under 270 and 399 deemed demand notices
- Start-up ESOP deferral retained (289(3))
Applies from tax year 2026-27 (from 1 April 2026).
What changed
Renumbered.
Practice notes
- Payment period and interest on unpaid demand are in section 411 (old 220).
Frequently asked
What is section 156 called in the new Income Tax Act 2025?
Section 289 (notice of demand); time to pay and interest are in section 411.
What is section 156 called in the new Income-tax Act, 2025?
Section 156 of the Income-tax Act, 1961 corresponds to Section 289 of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).
What changed in section 156 under the new Income Tax Act?
Renumbered.
Is section 156 still applicable for FY 2025-26?
Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 156 of the 1961 Act. Section 289 of the 2025 Act applies from tax year 2026-27.