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How to Response to Outstanding Income Tax Demand?
Once the e-Filed returns are processed and outstanding tax demand available in e-Filing portal, assessee is facilitated to submit the response against outstanding tax demand raised by CPC/AST.
The Taxpayer can submit the response online to the outstanding demand by either choosing to ‘Agree’ or ‘Disagree’ with the demand.
Perform the following steps for Responding to the Outstanding Demand.
- Logon to ‘e-Filing’ Portal www.incometaxindiaefiling.gov.in
- Go to the ‘e-File’ menu and Click ‘Response to Outstanding Demand’
- Click the hyperlink 'Submit' located under 'Response' column (To respond for the Outstanding Demand)
- Demand is correct
- Demand is partially correct
- Disagree with demand
- Demand is not correct but agree for adjustment
- On choosing 'Demand is correct', click on 'Submit' button to 'Confirm' and complete the response submission process.
• If you confirm 'Demand is correct' then you cannot disagree with the demand again.
• If any refund is due, the refund will be adjusted against the outstanding demand.
• The taxpayer can pay the demand by clicking the link under 'Pay Tax' option.
- On choosing 'Demand is partially correct', Enter the 'Amount which is correct' and the 'Amount which is incorrect' will be auto filled. Select the appropriate reason(s) from the list and fill all the applicable fields, upload the necessary supporting documents and 'Submit' the response.
- On choosing 'Disagree with demand', Select the appropriate reason(s) from the list and fill all the applicable fields, upload the necessary supporting documents and 'Submit' the response.
- On choosing 'Demand is not correct but agree for adjustment', Select the appropriate reason(s) from the list and fill all the applicable fields, upload the necessary supporting documents and 'Submit' the response.
• List of Reasons and the additional details required on selecting each reasons.Choose any one of the listed responses.
Reason Selected Additional Details Required Demand paid and challan
BSR Code Date of payment Serial Number Amount Remarks Demand paid and challan
has no CIN
Date of payment Amount Remarks Upload Copy of Challan Demand already reduced by rectification / Revision Date of Order Demand after rectification/ revision Details of AO Upload Rectification / Giving appeal
effect order passed by AO
Demand already reduced
by Appellate Order but
appeal effect to be given
Date of Order Order passed by Reference Number of Order Demand after Appeal effect Appeal has been filed: Stay petition has been filed Date of filing of appeal Stay petition filed with Appeal has been filed: Stay has been granted Date of filing of appeal Stay granted by Upload copy of Stay Appeal has been filed:
Instalment has been
Date of filing of appeal Instalment granted by Upload copy of stay/instalment order Rectification / Revised
Return filed at CPC
Filing Type e-Filed Acknowledgement No. Remarks Upload Challan Copy Upload TDS Certificate Upload Letter requesting rectification
Upload Indemnity Bond Rectification filed with AO Date of application Remarks Others Others
Step 5.A success message along with Transaction ID is displayed on successful submission of the response.Note :
• To View the submitted response go to 'e-File' > 'Response to Outstanding Demand' and click on the 'View' link under the 'Response' column and in the new page click on the 'Transaction Id' hyperlink.
• For the demand which is shown to be uploaded by AO, then the rectification right is with Assessing Officer and for the demand against which there is no 'Submit' response available is already confirmed by the Assessing Officer. Kindly contact your jurisdictional Assessing Officer for clarification.
FAQs relating to outstanding demand in income tax
1. Whom should I approach to rectify the demand amount?
The return has been processed at CPC:
- File online Rectification to CPC by logging into https://incometaxindiaefiling.gov.inwith your user ID and password. Select “Rectification request” under My Account tab and enter the necessary details.
The return has been processed by Assessing Officer:
- Kindly file a rectification application u/s 154 with the Jurisdictional Assessing Officer.
2. How to know my Jurisdictional Assessing Officer details:
- To know your Jurisdictional Assessing Officer details -> Please log on to https://incometaxindiaefiling.gov.in and click on “Know Your Jurisdictional AO” under “SERVICES” menu.
3. Where can I view the details of tax payment and TDS deducted?
- The tax payment and TDS data available with the Department can be seen in the Form 26AS statement. To check the 26AS statement please login to your e-filing account at https://incometaxindiaefiling.gov.in and go to “My Account -> View form 26AS (Tax Credit)”
4. How can I make payment for the outstanding demand?
- Tax payments can be made through a bank authorized to collect Income Tax payments, after filling in the necessary particulars in the Challan provided for this purpose or Online tax payments can be made through the website www.incometaxindia.gov.in under ‘e- Pay Taxes .
- Please make the payment quoting minor head “400” only, as wrong minor head may delay the process of settlement of the outstanding demands.
- Challan Status: You can ascertain the status of your payment Challan through the website https://tin.tin.nsdl.com/oltas/index.html.These payment will also be reflected in Form 26 AS statement. Please refer question No 3 for further details on Form 26AS.
5. I have made an error while making the payment through challan, how can it be corrected?
- In case you detect any mistake in the Challan after payment of the amounts you may approach the concerned bank branch within 7 days of payment for necessary correction in the challan. If the changes are to be made after 7 days of payment, kindly contact the Assessing officer for the correction.
6. Consequences for non-payment of tax demand?
- Non payment of tax demand attracts penalty and prosecution as per the provisions of the Income tax Act,1961 along with proceedings for recovery listed in Chapter XVII-D of the Income-tax Act, 1961.
- You are also liable to pay simple interest at the rate of one per cent for every month or part of a month for the period of default in accordance with section 220(2) of Income Tax Act, 1961.
7. How can I request for a copy of the order passed by CPC?
- In case you require the intimation order to be resent to you, please log on to https://incometaxindiaefiling.gov.in with your User ID and Password. Go to My Account tab Request for intimation u/s 143(1)/ 154.
- The request can also be placed through CPC call center (Ph.No: 18004252229).
8. What are the common reason for tax demand raised and probable resolution for the same?
Listed below are some of the commonly noticed scenarios, which may result in demand while processing the return at CPC and suggested action! resolution for such scenarios. If the outstanding demand in your case is on account of any of the reasons below, you are requested to initiate the suggested action at the earliest.
S.No Scenario Resolution 1 Information in the Income Tax Return (ITR) or appropriate schedules are not filled up correctly and completely resulting in difference in computation of Total income/ Exemption/ Deduction/ Tax/ interest etc by CPC. 1. Please refer to the intimation sent to your email address. In case of variation in the figures of total income! Exemption/ Deduction/ tax/ interest etc, the relevant schedules which caused the error! difference are annexed to the intimation. On examination of these schedules, the tax payer may apply for rectification online by resubmitting the correct information! schedules.
2. Tax payer can apply for rectification u!s 154 of the Income Tax Act, through the procedure given below:
a. Please log on to https://incometaxindiaefiling.gov.in with your user ID and password.
b. Select “Rectification request” under My Account tab and enter the necessary details.
c. Select appropriate Rectification Type based on information:
(i) If change is required only with respect tax details – > Select “Tax payer is correcting data for tax mismatch only”.
(ii) If change is required with respect to any other data -> Select-“Taxpayer is correcting the data in rectification”. (iii) If no changes required from assesse -> Select “No further data correction required. Reprocess the case”.
2 If tax credit as claimed by the assessee has not been allowed while processing. Please refer the tax mismatch communication sent along with the intimation order to your email ID. Tax mismatch communication will contain the details of mismatch and possible resolution.
9. Other important points to be considered.at are the common reason for tax demand raised and probable resolution for the same?
- The outstanding demand status can be viewed on the efiling by logging onto
https://incometaxindiaefiling.gov.in with your user id and password. Go to ‘e-file’ tab->Response to outstanding demand. If after a period of 30 days of your payment the tax demand is not updated at the aforementioned website, please feel free to contact the CPC Customer Care at 18004252229.
- If any of the demands is already paid, but the same continues to be shown as outstanding, please contact CPC Customer Care 18004252229 (Toll Free) or 080-22546500.
Disclaimer: The contents of this article are for information purposes only and does not constitute advice or a legal opinion and are personal views of the author. It is based upon relevant law and/or facts available at that point of time and prepared with due accuracy & reliability. Readers are requested to check and refer to relevant provisions of statute, latest judicial pronouncements, circulars, clarifications etc before acting on the basis of the above write up. The possibility of other views on the subject matter cannot be ruled out. By the use of the said information, you agree that Author / TaxGuru is not responsible or liable in any manner for the authenticity, accuracy, completeness, errors or any kind of omissions in this piece of information for any action taken thereof. This is not any kind of advertisement or solicitation of work by a professional.
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