Income Tax Demand
The Income Tax Department has recently released a circular for tax payers which details how to respond to an income tax demand notice. Income tax demand raised on a tax payer is uploaded by the Assessing Officer (AO) on the income tax website. The details of the demand can be accessed by the tax payer by logging on to www.incometaxindiaefiling.gov.in. The taxpayers can respond online to these demands.
If you have received an income tax demand - here are the steps to take to respond to a demand notice:
Step 1: Login to www.incometaxindiaefiling.gov.in with user ID, password, date of birth.
Step 2: Click on 'e-file' and go to 'Respond to Outstanding Tax Demand'. The following details are now displayed.
Assessment Year
Section Code
Demand Notification Number
Date on which demand is raised
Outstanding Demand amount
Uploaded by
Rectification rights
Response - Submit and View
Step 3: Click on 'Submit' for the relevant assessment year. Choose one of the one options mentioned below:
Demand is correct
Demand is partially correct
Disagree with demand
Option 1
When option selected by you is -- 'Demand is correct'. A pop up screen comes up with 'If you confirm, demand is correct then you cannot disagree with the demand.' Click on submit if this is ok with you. A success message shall be splashed on your screen.
If any refund is due, the outstanding amount along with interest will be adjusted against the refund due.
In any other case you must repay the demand immediately. You can read about how to pay your tax demand here.
Option 2
When option selected by you is -- 'Demand is partially correct' -- you need to enter 'amount which is correct' and 'amount which is incorrect'. If you enter amount which is incorrect, you have to fill up one or more reasons for it.
Demand has already been paid: Provide the CIN (Challan Identification Number). Also mention BSR code, date of payment, serial number of 'challan' and amount. You can also add your comments under 'remarks'. Or if CIN is not available mention that demand has been paid but 'challan' has no CIN. And mention date of payment, amount, and remarks (your comments) if any.
Demand has already been reduced by rectification/revision: Also provide date of order, demand amount, details of AO who has rectified. And then upload rectification/appeal effect order passed by AO.
Demand has already been reduced by appellate order but appeal effect has to be given by the department: Also provide, date of order, appellate order passed by (details of CIT(A) etc). Reference number of the order.
Appeal has been filed and stay petition has been filed or stay has been granted by or installment has been granted by: Also provide date of filing of appeal, appeal pending with (details of CIT(A) etc) Stay petition filed with (details of office). If stay has been granted, you have to also upload the copy of the Stay Order.
Rectification/ Revised Return has been filed at CPC: The following details are required additionally
Filing Type
E-filed acknowledgement number
Remarks (comments, if any of the tax payer)
Upload challan copy
Upload TDS Certificate
Upload letter requesting rectification copy
Upload Indemnity Bond
Rectification has been filed with Assessing Officer: Mention the date of application and remarks (comments, if any of the tax payer).
Option 3
If you 'Disagree with the Demand' then you must furnish the details of your disagreement along with reasons. The details/reasons are the same as the mentioned above under 'demand is partially correct'. After submitting a response the success screen would be displayed with the transaction ID.
You can also view the response submitted by you by clicking 'View' under the response column and the following details will be displayed -- serial number, transaction ID, date of response and response type.
Hopefully with these steps to help you, you will be able to suitably respond to any demand raised by the AO. more
If you have received an income tax demand - here are the steps to take to respond to a demand notice:
Step 1: Login to www.incometaxindiaefiling.gov.in with user ID, password, date of birth.
Step 2: Click on 'e-file' and go to 'Respond to Outstanding Tax Demand'. The following details are now displayed.
Assessment Year
Section Code
Demand Notification Number
Date on which demand is raised
Outstanding Demand amount
Uploaded by
Rectification rights
Response - Submit and View
Step 3: Click on 'Submit' for the relevant assessment year. Choose one of the one options mentioned below:
Demand is correct
Demand is partially correct
Disagree with demand
Option 1
When option selected by you is -- 'Demand is correct'. A pop up screen comes up with 'If you confirm, demand is correct then you cannot disagree with the demand.' Click on submit if this is ok with you. A success message shall be splashed on your screen.
If any refund is due, the outstanding amount along with interest will be adjusted against the refund due.
In any other case you must repay the demand immediately. You can read about how to pay your tax demand here.
Option 2
When option selected by you is -- 'Demand is partially correct' -- you need to enter 'amount which is correct' and 'amount which is incorrect'. If you enter amount which is incorrect, you have to fill up one or more reasons for it.
Demand has already been paid: Provide the CIN (Challan Identification Number). Also mention BSR code, date of payment, serial number of 'challan' and amount. You can also add your comments under 'remarks'. Or if CIN is not available mention that demand has been paid but 'challan' has no CIN. And mention date of payment, amount, and remarks (your comments) if any.
Demand has already been reduced by rectification/revision: Also provide date of order, demand amount, details of AO who has rectified. And then upload rectification/appeal effect order passed by AO.
Demand has already been reduced by appellate order but appeal effect has to be given by the department: Also provide, date of order, appellate order passed by (details of CIT(A) etc). Reference number of the order.
Appeal has been filed and stay petition has been filed or stay has been granted by or installment has been granted by: Also provide date of filing of appeal, appeal pending with (details of CIT(A) etc) Stay petition filed with (details of office). If stay has been granted, you have to also upload the copy of the Stay Order.
Rectification/ Revised Return has been filed at CPC: The following details are required additionally
Filing Type
E-filed acknowledgement number
Remarks (comments, if any of the tax payer)
Upload challan copy
Upload TDS Certificate
Upload letter requesting rectification copy
Upload Indemnity Bond
Rectification has been filed with Assessing Officer: Mention the date of application and remarks (comments, if any of the tax payer).
Option 3
If you 'Disagree with the Demand' then you must furnish the details of your disagreement along with reasons. The details/reasons are the same as the mentioned above under 'demand is partially correct'. After submitting a response the success screen would be displayed with the transaction ID.
You can also view the response submitted by you by clicking 'View' under the response column and the following details will be displayed -- serial number, transaction ID, date of response and response type.
Hopefully with these steps to help you, you will be able to suitably respond to any demand raised by the AO. more
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View all 12 comments Below 12 comments
Ravinder Ji, Section 139(5) says " If any mistake/defect/omission in the original return is noticed by the assessee, he can furnish a revised return before the assessment has been made or within one year from the end of the relevant assessment year, whichever is earlier", hence you cannot revise your return now. You need to file online rectification as required by CPC, Bangalore. more
Jul 26
Thank you Gupta ji for advising me to file a revised return.In this connection I have 2 observations. 1) I had filed the return with correct status i.e. Individual online. 2) The CPC Bangalore has finalised assessment and sent the intimation u/s 143(1) 3) On my application for rectification CPC sent me the order u/s 154 without making any change in the amount of demand. Now my question is whether one can file a revised return when the assessment has already been completed u/s 143(1) & 154. I understand that a revised return cannot be filed after the assessment has been completed.I think it need to be examined. Thanks once again. more
Jun 27
The return filed by me for A.Y.2013-14 as an 'Individual" was erroneously assessed as that of HUF which resulted in a very high demand of tax.I applied for rectification but assessment was again done as that of HUF.Then I posted on Income tax website my grievance that my case should be assessed as an individual.Their response ver vatim is as under:- ''Kindly fill the SCH personal information correctly and file online rectification.'' I am unable to understand the reply as I had filed the return correctly as an Individual. I seek guidance in the case. I am unable to understand more
Jun 26
