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.
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.
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.
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.
Once you agree with the outstanding demand, you cannot undo your choice and you will need to proceed to make the payment.
If you select “Demand is Partially correct” option, then you will have to select from one of the below two options:
If you select the option “Disagree with demand”, then the same process must be followed as for “Demand is partially correct”.