Rules 4-8 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Rules 4 to 8 turn five sections of the Act into forms and fees. Rule 4 names the tax authorities for section 8, rule 5 prescribes the notice of demand (Form 1), rules 6 and 7 prescribe the appeals to the Commissioner (Appeals) and the Appellate Tribunal (Forms 2, 3 and 4) with fees of ten thousand and twenty five thousand rupees, and rule 8 prescribes the statement of tax arrears (Form 5). They implement sections 8, 13, 15, 18, 31 and 33. Where a notice of demand has been served and the time to appeal is running, our legal dispute resolution team can go through the order and the rules with you.
As per the Rules as notified on 2 July 2015 (G.S.R. 529(E)), an appeal to the Commissioner (Appeals) is made in Form 2 with a fee of ten thousand rupees, and an appeal to the Appellate Tribunal in Form 3 with a fee of twenty five thousand rupees, as notified in 2015. Under rule 6(4) the appeal to the Commissioner (Appeals) is not admitted unless the tax, penalty and interest on the amount not objected to have been paid when it is filed. A notice of demand is in Form 1, and the statement of tax arrears in Form 5.
Rule 4: tax authorities for section 8
For the purposes of section 8 (powers regarding discovery and production of evidence), the tax authorities are the Assessing Officer, Joint Commissioner, Commissioner (Appeals), Commissioner or Principal Commissioner, Chief Commissioner or Principal Chief Commissioner. This rule is made under section 85(2)(b), which allows the Rules to prescribe the tax authority for any purpose of the Act. The powers themselves are explained in our article on sections 8 and 9.
Rule 5 and Form 1: notice of demand
Where any tax, interest or penalty is payable in consequence of any order passed under the Act, the Assessing Officer shall serve upon the assessee a notice of demand in Form 1 specifying the sum so payable. It implements section 13, explained in our article on sections 12 to 14.
From its printed text, Form 1 is addressed to the assessee with the status and PAN, and tells him:
- that for the assessment year a sum has been determined to be payable;
- that the amount is to be paid to the Manager, authorised Bank, State Bank of India or Reserve Bank of India within a number of days of service, with a printed line about the previous approval of the Additional or Joint Commissioner where a period of less than thirty days is allowed;
- that if he does not pay, proceedings for recovery will be taken under sections 30 to 39 of the Act;
- that he may present an appeal under section 15 to the Commissioner (Appeals) within thirty days of receipt of the notice, in Form 2; and
- that, where the amount became due as a result of the Commissioner (Appeals)'s order, he may appeal under section 18 to the Appellate Tribunal within sixty days of receipt of that order, in Form 3.
The notes ask the Assessing Officer to delete inappropriate paragraphs and say a cheque must be drawn in favour of the Manager, authorised Bank, State Bank of India or Reserve Bank of India.
Rule 6 and Form 2: appeal to the Commissioner (Appeals)
- Rule 6(1). An appeal under section 15(1) to the Commissioner (Appeals) shall be made in Form 2.
- Rule 6(2). The form of appeal, the grounds of appeal and the form of verification, for an assessee, shall be signed and verified by the person who is authorised to sign the return of income under section 140 of the Income-tax Act, as applicable to the assessee.
- Rule 6(3). Every appeal filed under section 15(1) shall be accompanied by a fee of ten thousand rupees.
- Rule 6(4). No appeal under section 15(1) shall be admitted unless, at the time of filing, the assessee has paid the tax along with penalty and interest on the amount of liability which has not been objected to by the assessee.
Rule 6(4) is a condition of admission: the undisputed part must be paid first. Form 2, by its printed items, asks for the appellant's name and address, PAN, the assessment year, the Assessing Officer, the section and date of the order, the date of service of the notice of demand or intimation, the section under which the appeal is preferred, the relief claimed, the amount of tax with penalty and interest not objected to and whether it has been paid, details of other pending appeals, and an address for notices. It then has a statement of facts, grounds of appeal and a verification that what is stated is true as far as the appellant knows and believes. Its notes say the form, grounds and verification are signed under rule 6(2), the memorandum, statement of facts and grounds are in duplicate with a copy of the order and the original notice of demand if any, and the fee is credited in a branch of the authorised Bank, State Bank of India or Reserve Bank of India. The appeal itself is explained in our article on sections 15 to 17.
The time within which an appeal must be presented is printed in Form 1 (thirty days to the Commissioner (Appeals), sixty days to the Appellate Tribunal) and should be read from the notice served.
Rule 7, Forms 3 and 4: Appellate Tribunal
- Rule 7(1). An appeal under section 18(1) to the Appellate Tribunal shall be made in Form 3, and where made by the assessee, the form of appeal, the grounds and the verification shall be signed by the person specified in rule 6(2).
- Rule 7(2). The memorandum of cross-objections under section 18(4) shall be made in Form 4, signed by the same person where made by the assessee.
- Rule 7(3). Every appeal filed under section 18(1) shall be accompanied by a fee of twenty five thousand rupees.
Form 3, by its printed items, asks for the State in which the assessment was made, PAN, the section under which the order was passed, the assessment year, the total undisclosed foreign income and asset assessed, the Assessing Officer, the Commissioner (Appeals) who passed the order, the date of communication of the order, addresses for notices and the relief claimed, followed by grounds and a verification of the same kind. Its notes ask for the memorandum in triplicate with copies of the orders, record the fee, say it is credited in a branch of the authorised Bank, State Bank of India or Reserve Bank of India by challan, say the Tribunal shall not accept cheques, drafts, hundies or other negotiable instruments, and say the memorandum is written in English or, in notified States, at the option of the appellant in Hindi. One printed item in Form 3 refers to the Commissioner (Appeals) passing the order "under section 12/15/45"; it is quoted as printed and not reconciled here.
Form 4, the memorandum of cross-objections, asks for the appeal number allotted, the State, the section, the assessment year, the date of receipt of notice of appeal, addresses and the relief claimed, with grounds and a verification, and its notes require it in triplicate. The Tribunal appeal is explained in our article on section 18.
Rule 8 and Form 5: statement of tax arrears
A statement of tax arrears under section 31 or section 33 shall be drawn up by the Tax Recovery Officer in Form 5. The rule's title and text print "tax arears" (a misspelling, quoted as printed). Form 5 is headed as a certificate under section 31 or 33. By its printed text, the Tax Recovery Officer certifies that a sum has become due from the person, or that a certificate forwarded by another Tax Recovery Officer under section 33(2) specifies a sum to be recovered, directs him to pay within fifteen days of receipt of the notice, failing which recovery is made under sections 31 to 39 of the Act and the Second Schedule to the Income-tax Act, 1961 and the rules made under it, and says he will also be liable for costs, charges and expenses. It ends with a table of the amount in arrears: tax, penalty, interest, any other sum and total. Recovery is explained in our article on sections 30 and 31. References to the Income-tax Act and the Income-tax (Appellate Tribunal) Rules, 1963 named in the Forms are quoted as printed in 2015; the current law should be checked.
The rules at a glance
| Rule | Subject | Implements | Form | Fee |
|---|---|---|---|---|
| 4 | Tax authorities for section 8 | Section 8, via section 85(2)(b) | None | None |
| 5 | Notice of demand | Section 13 | Form 1 | None |
| 6 | Appeal to Commissioner (Appeals) | Section 15(1) | Form 2 | Ten thousand rupees (as notified in 2015) |
| 7(1), (3) | Appeal to Appellate Tribunal | Section 18(1) | Form 3 | Twenty five thousand rupees (as notified in 2015) |
| 7(2) | Cross-objections | Section 18(4) | Form 4 | None stated |
| 8 | Statement of tax arrears | Sections 31 and 33 | Form 5 | None |
The Forms are headed "FORM 1" to "FORM 4" and "Form 5" in the print; this is a difference of style only.
A worked example
Tarun Bhasin is served a notice of demand in Form 1 for an order of the Assessing Officer. He objects to part of the liability. To appeal to the Commissioner (Appeals) he files Form 2, signed and verified by the person authorised to sign his return of income under section 140 of the Income-tax Act, with a fee of ten thousand rupees. Under rule 6(4), he must have paid the tax, penalty and interest on the part he has not objected to when he files, or the appeal is not admitted. If he loses before the Commissioner (Appeals) and appeals further, he uses Form 3 with a fee of twenty five thousand rupees. The Tax Recovery Officer, if recovery begins, draws up the statement of arrears in Form 5. The names and amounts are invented.
Points the text leaves open
The Rules do not say what happens to a part payment under rule 6(4) if the appeal is later dismissed, nor do they give a fee for the cross-objections in Form 4 or for the rectification or revision applications. This article does not describe any online filing step; the Rules as notified describe only the printed forms. Later amendment rules should be checked, including for the fees.
References and what to check
The rules and Forms are read as notified on 2 July 2015, and later amendment rules should be checked. Later Finance Act amendments to the sections implemented should also be checked. For the income-tax appeals procedure, which the Act copies in places, see our parallel guides on appeals to the CIT(A) and appeals to the ITAT.
Need help with an appeal?
If a notice of demand or an order under the Act has been served on you, our legal dispute resolution team can help you check the form, the signatory, the fee and the pre-deposit condition before you file.
Key takeaways
- Rule 4 lists the tax authorities for section 8; rule 5 prescribes Form 1 for the notice of demand.
- Appeal to the Commissioner (Appeals): Form 2, fee of ten thousand rupees, as notified in 2015.
- Appeal to the Appellate Tribunal: Form 3, fee of twenty five thousand rupees, as notified in 2015; cross-objections in Form 4.
- Rule 6(4): the appeal to the Commissioner (Appeals) is not admitted unless tax, penalty and interest on the undisputed amount are paid at filing.
- The statement of tax arrears is in Form 5, drawn up by the Tax Recovery Officer.
- Check later amendment rules before acting.
Read next
- Sections 12 to 14: rectification, notice of demand and direct assessment
- Sections 15 to 17: appeal to the Commissioner (Appeals)
- Section 18: appeal to the Appellate Tribunal
- How to file an income tax appeal (CIT-A)
Disclaimer: Based on the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 as enacted and published in the Gazette of India on 27 May 2015, and on the Rules of 2015 as notified on 2 July 2015, as consulted on 2 October 2026. Later Finance Act amendments, amendment rules and the current income-tax law should be checked. This article is general information, not legal advice; check the official text before acting.