LLP vs Partnership Firm
October 30, 2018
Time Limit for Issuing Different Income Tax Notices
November 1, 2018

Submitting Response to Outstanding Tax Demand Notice

Last Update Date : April 30, 2019
Estimated Read Time: 4 min

The range of situations and emotions we encounter in life are as many as the colors in a prism.  Our lives are not always filled with joy and love. We sometimes are thrown into anxiety ridden situations.  Receiving an outstanding tax demand notice from the income tax department is such a situation that will bring forth your anxieties and have you desperately seeking answers to rectify/clarify the notice received.  But responding to the outstanding tax demand can be easy, once you have the information you need at your fingertips.

Demand Notice

Income Tax Demand Notice

What is Outstanding Tax Demand Notice?

After filing your income tax return, the Income Tax Department(ITD) verifies the information submitted and if everything matches, will send you an intimation u/s 143(1), accepting your filed return.  However, if a mismatch is found then you will either receive a refund, as you have paid too much taxes, or you will receive an outstanding tax amount demand notice, as the taxes paid by you is less than the information with the ITD.

How to Respond to Outstanding Tax Demand Notice?

If you receive an outstanding tax demand notice, the first thing to do is not panic and verify whether the demand raised is correct or not.

  • Login to the e-filing website here
  • Enter your User ID, Password and Date of birth
  • Under “e-file” select “Respond to Outstanding Tax Demand”

how to respond to outstanding tax demand

  • As per the corresponding A.Y., select “Submit” and the following will be displayed:
    • Demand is correct
    • Demand is partially correct
    • Disagree with demand

How H&R Block can help you?

Receiving a tax notice is never a pleasant experience and failure to respond to it correctly can result in further proceedings or penalties.  To ensure any notices you receive are handled with care and attention to detail, consult your personal tax experts at H&R Block India to get instant tax notice assistance.

How to Pay Outstanding Tax Demand Online?

Once you agree with the outstanding demand, you cannot undo your choice and you will need to proceed to make the payment.

  • Select “Demand is correct”
  • Click “Submit” on the popup screen which confirms that If you confirm… “Demand is correct” then you cannot Disagree with demand.
  • If a refund amount is owing  from the current year’s return, the outstanding amount will be adjusted against the refund due and the remaining outstanding amount will need to be paid.  If there is no refund owing, then the entire amount will need to be paid.
  • Follow these steps to make income tax payment online.

Responding when Outstanding Income Tax Demand Status is Partially Correct

If you select “Demand is Partially correct” option, then you will have to select from one of the below two options:

  • Amount which is correct: Fill in the amount which is correct and the incorrect box will autofill with the balance owing.
    Note: If the amount entered is equal to the amount raised then a message will appear stating that since the amount entered is equal to the amount raised, please select “Demand is correct”
  • Amount which is incorrect: Once the amount is auto-filled, you will need to select the reason for the correction from the following list:

Demand Status is Partially Correct

  1. Demand Paid – Provide the details of the payment such as Challan ID Number (CIN), date of payment etc.  If you did not note down the challan number, you can mention that the CIN is not available but payment has been made by challan and provide the date of payment also.
  2. Demand already reduced by rectification/revision – Provide details of the rectification/revision such as the Assessing officer (AO) who made the revisions, the date of the order etc. and upload the rectified order by your AO.
  3. Demand already reduced by Appellate Order but appeal effect to be given –  Provide details of the appellate authority who passed the order, the date of the order, etc.
  4. Appeal has been filed – Provide the details of the appeal and its status and upload a copy of the relevant documents.
  5. Rectification / Revised Return filed at CPC – Include the following details: e-filing acknowledgement number, challan copy, filing type, Upload: TDS certificate, copy of rectification request letter, indemnity bond.
  6. Rectification filed with AO – Provide the application date along with other comments
  7. Others

How to Submit Your Response If You Disagree With The Outstanding Demand?

If you select the option “Disagree with demand”, then the same process must be followed as for “Demand is partially correct”.

  • Have you received an Income Tax Notice?
  • H&R Block can help you deal with notices issued u/s 139(9), 143(1), 143(2), 148, 156 & more
  • 100% security and confidentiality guarantee
  • Get legal guidance on tax matters by qualified and seasoned Tax Lawyers and CAs
  • Yes, Resolve My Notice
Leave a Rating!
5.0 (5 Votes)
Niteesh Singh
Niteesh is a Tax Researcher and Content Lead at H&R Block (India). He holds an MBA with a specialisation in BFSI domain. In his career spanning over six years, he has helped thousands of people understand taxes in a simple and effective manner. Outside work, Niteesh is an astronomy geek who is also involved in wildlife conservation activities.

Still Have Questions?