{"id":5033,"date":"2018-07-20T00:46:14","date_gmt":"2018-07-19T19:16:14","guid":{"rendered":"http:\/\/carajput.com\/blog\/?p=5033"},"modified":"2024-03-16T16:49:43","modified_gmt":"2024-03-16T11:19:43","slug":"how-to-deal-with-income-tax-demand-notice","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/how-to-deal-with-income-tax-demand-notice\/","title":{"rendered":"HOW TO RESPONSE INCOME TAX DEMAND NOTICE"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69e89ea42190b\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69e89ea42190b\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/how-to-deal-with-income-tax-demand-notice\/#IF_You_received_demand_notice_then_here_are_the_steps_for_respond_the_demand_notice\" title=\"IF You received demand notice then here are the steps for respond\u00a0 the demand notice:-\">IF You received demand notice then here are the steps for respond\u00a0 the demand notice:-<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/how-to-deal-with-income-tax-demand-notice\/#Step_1_login_in_wwwincometaxindiaefilinggovin_with_user_ID_password_and_date_of_birth\" title=\"Step 1: \u00a0\u00a0\u00a0login in www.incometaxindiaefiling.gov.in\u00a0with user ID, password, and date of birth.\">Step 1: \u00a0\u00a0\u00a0login in www.incometaxindiaefiling.gov.in\u00a0with user ID, password, and date of birth.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/how-to-deal-with-income-tax-demand-notice\/#Step_2_Click_on_%E2%80%98E-file_and_go_to_%E2%80%98Respond_to_Outstanding_Tax_Demand\" title=\"Step 2 :\u00a0 Click on\u00a0\u2018E-file\u2019\u00a0and go to\u00a0\u2018Respond to Outstanding Tax Demand\u2019.\">Step 2 :\u00a0 Click on\u00a0\u2018E-file\u2019\u00a0and go to\u00a0\u2018Respond to Outstanding Tax Demand\u2019.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/how-to-deal-with-income-tax-demand-notice\/#Step_3_Click_on_%E2%80%98Submit_for_the_relevant_assessment_year_Choose_one_of_the\" title=\"Step 3:\u00a0Click on \u2018Submit\u2019\u00a0for the relevant assessment year. Choose one of the\">Step 3:\u00a0Click on \u2018Submit\u2019\u00a0for the relevant assessment year. Choose one of the<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/how-to-deal-with-income-tax-demand-notice\/#HOW_TO_RESPONSE_INCOME_TAX_DEMAND_NOTICE\" title=\"HOW TO RESPONSE INCOME TAX DEMAND NOTICE\">HOW TO RESPONSE INCOME TAX DEMAND NOTICE<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/how-to-deal-with-income-tax-demand-notice\/#ConsequencesPenalty_of_Assesses_in_default\" title=\"Consequences\/Penalty of Assesses\u00a0in default \">Consequences\/Penalty of Assesses\u00a0in default <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/how-to-deal-with-income-tax-demand-notice\/#Income_Tax_Dept_Initiates_Closure_of_Old_Demands_through_Tax_Portal\" title=\"Income Tax Dept Initiates Closure of Old Demands through Tax Portal\">Income Tax Dept Initiates Closure of Old Demands through Tax Portal<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/how-to-deal-with-income-tax-demand-notice\/#Old_Tax_Demand_Ceiling_set_at_Rs_100000_Assessee\" title=\"Old Tax Demand Ceiling set at Rs. 1,00,000\/ Assessee\">Old Tax Demand Ceiling set at Rs. 1,00,000\/ Assessee<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/demand.png\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-8679\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/demand.png\" alt=\"www.carajput.com; Notice from IT Department\" width=\"955\" height=\"538\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/demand.png 560w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/demand-300x169.png 300w\" sizes=\"(max-width: 955px) 100vw, 955px\" \/><\/a><\/p>\n<div class=\"entry-content post_content\">\n<div class=\"entry-content post_content\">\n<div class=\"entry-content post_content\" style=\"text-align: justify;\">\n<p>IF a taxpayer income tax return differ from the assessment made by <a href=\"https:\/\/carajput.com\/income-tax-services.php\">INCOME TAX<\/a> OFFICER then taxpayer issued income tax demand notice. This notice is issued when the taxpayer has deposit less Tax for which he is liable to pay.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"IF_You_received_demand_notice_then_here_are_the_steps_for_respond_the_demand_notice\"><\/span><span style=\"color: #000080;\">IF You received demand notice then here are the steps for respond\u00a0 the demand notice:-<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Step_1_login_in_wwwincometaxindiaefilinggovin_with_user_ID_password_and_date_of_birth\"><\/span><span style=\"color: #000080;\"><strong><span style=\"text-decoration: underline;\">Step 1:<\/span><\/strong> \u00a0\u00a0\u00a0login in <strong>www.incometaxindiaefiling.gov.in<\/strong>\u00a0with user ID, password, and date of birth.<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h3><span class=\"ez-toc-section\" id=\"Step_2_Click_on_%E2%80%98E-file_and_go_to_%E2%80%98Respond_to_Outstanding_Tax_Demand\"><\/span><span style=\"color: #000080;\"><strong><span style=\"text-decoration: underline;\">Step 2 :<\/span><\/strong>\u00a0 Click on\u00a0<strong>\u2018E-file\u2019<\/strong>\u00a0and go to\u00a0<strong>\u2018Respond to Outstanding Tax Demand\u2019<\/strong>.<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>The following details will be displayed \u2013<\/li>\n<\/ul>\n<ul>\n<li>Assessment year<\/li>\n<li>Section code<\/li>\n<li>Demand notification number<\/li>\n<li>Date on which demand is raised<\/li>\n<li>Outstanding demand amount<\/li>\n<li>Uploaded by<\/li>\n<li>Rectification rights<\/li>\n<li>Response \u2013 submit and view<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Step_3_Click_on_%E2%80%98Submit_for_the_relevant_assessment_year_Choose_one_of_the\"><\/span><span style=\"color: #000080;\"><strong><span style=\"text-decoration: underline;\">Step 3:<\/span><\/strong><strong>\u00a0Click on \u2018Submit\u2019<\/strong>\u00a0for the relevant assessment year. Choose one of the<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>options mentioned below-<\/p>\n<ul>\n<li><strong>Demand is correct<\/strong><\/li>\n<li><strong>Demand is partially correct<\/strong><\/li>\n<li><strong>Disagree with demand<\/strong><\/li>\n<\/ul>\n<ul>\n<li><strong><span style=\"text-decoration: underline;\">Option 1<\/span><\/strong><span style=\"text-decoration: underline;\"><strong>\u2018Demand is correct,\u2019\u00a0:-<\/strong><\/span>a pop-up screen appears with a message, \u2018If you confirm, demand is correct then you can\u2019t disagree with the demand.\u2019 Click on submit if this is ok according to you. A success message shall appear on your screen.\n<ul>\n<li>If any refund is due, the outstanding amount along with interest will be adjusted against the refund due.<\/li>\n<li>In any other case, you must repay the demand immediately. For this click on the option of Pay tax\u00a0 then click on confirm You will directly move to TIN website of NSDL where your outstanding tax amount is paid\u00a0 then click on the submit button.<\/li>\n<\/ul>\n<\/li>\n<li><strong><span style=\"text-decoration: underline;\">Option 2:<\/span><\/strong><strong><span style=\"text-decoration: underline;\">Demand is partially correct<\/span>,\u00a0 <\/strong>in this option \u00a0you need to enter the correct amount and incorrect amount . If amount is incorrect then you need to specify at least one reason for it..<\/li>\n<\/ul>\n<ul>\n<li><strong><span style=\"text-decoration: underline;\">Demand has already been paid<\/span><\/strong>\u00a0<strong>&#8211;<\/strong> Provide the challan identification number (CIN). Also mention BSR code, date of payment, the serial number of challan and amount. \u00a0If Challan identification number is not available, mention that demand has been paid by challan and Challan Identification Number is not available. Also mention the date of payment and amount payable.<\/li>\n<\/ul>\n<ul>\n<li><strong><span style=\"text-decoration: underline;\">Demand has already been reduced by\u00a0<\/span><\/strong><strong>rectification\/revision<\/strong>\u00a0\u2013 Provide the date of order, demand amount, details of Assessing officer who has rectified. Next, upload rectification\/appeal effect order passed by Assessing officer.<\/li>\n<\/ul>\n<ul>\n<li><strong><span style=\"text-decoration: underline;\">Demand has already been reduced by appellate order but appeal effect has to be given by the department<\/span><\/strong>\u00a0\u2013 Provide the date of order and the appellate order passed by and the reference number of order.<\/li>\n<\/ul>\n<ul>\n<li><strong><span style=\"text-decoration: underline;\">Appeal has been filed and stay petition has been filed, or stay has been granted by, or installment has been granted by<\/span><\/strong>\u00a0\u2013 Provide the\u00a0date of filing of the appeal, appeal pending with (details of CIT (A), stay petition filed with (details of office). If the\u00a0stay has been granted, you have to also upload the copy of the stay order.<\/li>\n<\/ul>\n<ul>\n<li><strong><span style=\"text-decoration: underline;\">Rectification\/revised return has been filed at CPC<\/span><\/strong>\u00a0\u2013 The following details are required additionally:\n<ul>\n<li>Filing\u00a0type<\/li>\n<li>E-filed acknowledgment number<\/li>\n<li>Remarks (comments, if any of the tax payer)<\/li>\n<li>Upload challan copy<\/li>\n<li>Upload TDS certificate<\/li>\n<li>Upload letter requesting rectification copy<\/li>\n<li>Upload indemnity bond<\/li>\n<\/ul>\n<\/li>\n<li><strong><span style=\"text-decoration: underline;\">Rectification has been filed with assessing officer<\/span><\/strong>\u00a0\u2013 Mention the date of application and remarks.<\/li>\n<\/ul>\n<ul>\n<li><strong><span style=\"text-decoration: underline;\">Option 4 \u2013 Demand is not correct\u00a0\u00a0\u00a0 <\/span><\/strong>If the taxpayer choose the option of demand is not correct then taxpayer select the option as mention in disagree with the demand.<\/li>\n<\/ul>\n<ul>\n<li><strong><span style=\"text-decoration: underline;\">Option 3<\/span><\/strong>\u2013 <span style=\"text-decoration: underline;\">\u2018<strong>Disagree with the Demand<\/strong>\u2019\u00a0<\/span>\u00a0\u00a0 then the taxpayer must provide the details of disagreement along with reasons. The reasons are the same as the mentioned above under \u2018demand is partially correct.\u2019 After submitting a response, the success screen would be displayed with the transaction.<\/li>\n<\/ul>\n<p>If the taxpayer wants to view the response submitted by taxpayer then clicking\u00a0<strong>\u2018View<\/strong>\u2019 under the response column and the following details will be displayed<\/p>\n<ul>\n<li>Serial number,<\/li>\n<li>Transaction ID,<\/li>\n<li>Date of response and response type.<\/li>\n<\/ul>\n<p>If the assessee fails to pay part or whole of the demand raised by INCOME TAX AUTHORITIES under section 156 within 30 days of receipts, is termed as assessee in default.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"HOW_TO_RESPONSE_INCOME_TAX_DEMAND_NOTICE\"><\/span><span style=\"color: #000080;\">HOW TO RESPONSE INCOME TAX DEMAND NOTICE<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-24761\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/Noice..jpg\" alt=\"HOW TO RESPONSE INCOME TAX DEMAND NOTICE\" width=\"927\" height=\"1066\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/Noice..jpg 927w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/Noice.-261x300.jpg 261w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/Noice.-890x1024.jpg 890w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/Noice.-768x883.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/Noice.-800x920.jpg 800w\" sizes=\"(max-width: 927px) 100vw, 927px\" \/><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-24760\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/Noice-2.jpg\" alt=\"HOW TO RESPONSE INCOME TAX DEMAND NOTICE\" width=\"839\" height=\"1163\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/Noice-2.jpg 606w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/Noice-2-216x300.jpg 216w\" sizes=\"(max-width: 839px) 100vw, 839px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"ConsequencesPenalty_of_Assesses_in_default\"><\/span><span style=\"text-decoration: underline; color: #000080;\"><b><u>Consequences\/Penalty of Assesses\u00a0in default <\/u><\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>If the person to whom the section 156 tax notice for demand has been issued fails to pay the amount demanded within the time limit provided under the section 156 tax notice, then the assessee is liable for following penalties:<\/p>\n<p><span style=\"color: #000080;\"><strong><span style=\"text-decoration: underline;\">Interest u\/s 220<\/span><\/strong><\/span><\/p>\n<p>Under section 220 interest at the rate of 1% per month or part thereof is payable after the expiry of the 30 days time given in section 156. However, the Principle Chief Commissioner \/ Chief Commissioner \/ Principle Commissioner\/Commissioner can reduce the interest if he is satisfied with all of the three following conditions that:<\/p>\n<p>(a) Payment of such amount will cause genuine hardship to the assessee;<\/p>\n<p>(b) Default was due to the circumstances beyond the control of the assessee, and<\/p>\n<p>(c) The assessee has co-operated in the inquiry relating to assessment\/recovery proceedings<\/p>\n<p><span style=\"color: #000080;\"><strong><span style=\"text-decoration: underline;\">Penalty u\/s 221<\/span><\/strong><\/span><\/p>\n<p>Under section 221 there is some penalty imposed by the AO on the assessee but it should not be more than the amount demanded in the Demand Notice. Before charging penalty as discussed above, the tax authorities shall give the taxpayer a reasonable opportunity of being heard. No penalty is levied if the taxpayer proves to the satisfaction of the tax authorities that the default was for good and sufficient reason<\/p>\n<\/div>\n<h2><span class=\"ez-toc-section\" id=\"Income_Tax_Dept_Initiates_Closure_of_Old_Demands_through_Tax_Portal\"><\/span><span style=\"color: #000080;\"><strong>Income Tax Dept Initiates Closure of Old Demands through Tax Portal<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The Income Tax Dept has started the process of closing previous demands via Income Tax Portal in an effort to streamline tax operations and improve taxpayer convenience. This project is a critical step towards achieving the goals set forth in the Interim Budget 2024, which include decreasing the backlog of unpaid tax requests and guaranteeing increased effectiveness in tax administration.<br \/>\n<img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-26206\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/image-35.png\" alt=\"tax demand \" width=\"986\" height=\"677\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/image-35.png 699w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/image-35-300x206.png 300w\" sizes=\"(max-width: 986px) 100vw, 986px\" \/><\/p>\n<p>As the Pic showing that the income Tax demands above INR 25k are closed.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Old_Tax_Demand_Ceiling_set_at_Rs_100000_Assessee\"><\/span><span style=\"color: #000080;\"><strong>Old Tax Demand Ceiling set at Rs. 1,00,000\/ Assessee<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-26296\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/old-demand-.jpg\" alt=\"Old Tax Demand Ceiling set at Rs. 1,00,000\/ Assessee  CBDT waive-off Income Tax Demands\" width=\"1280\" height=\"1212\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/old-demand-.jpg 1280w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/old-demand--300x284.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/old-demand--1024x970.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/old-demand--768x727.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/old-demand--800x758.jpg 800w\" sizes=\"(max-width: 1280px) 100vw, 1280px\" \/><\/p>\n<p>CBDT waive-off Income Tax Demands<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>IF a taxpayer income tax return differ from the assessment made by INCOME TAX OFFICER then taxpayer issued income tax demand notice. This notice is issued when the taxpayer has deposit less Tax for which he is liable to pay. IF You received demand notice then here are the steps for respond\u00a0 the demand notice:- &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[5441,5432],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/5033"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=5033"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/5033\/revisions"}],"predecessor-version":[{"id":26298,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/5033\/revisions\/26298"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=5033"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=5033"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=5033"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}