After filing Income Tax Returns, you need to e-verify the IT return. After that, the Income Tax Department (IT Department) processes the IT return filed by you. So never forget to e-verify your IT return. After the verification, (During the processing of IT return) if the Income Tax Department finds out that the taxes paid by you are less than what you liable to pay. Then the IT department will issue a demand notice.
Now let’s understand how to respond to the Demand notice received from the IT department.
1.Visit the e-filing login portal
2.Enter the user ID (PAN), password, captcha code and click ‘Login’. as shown below:
3. Post login, click on the ‘e-File’ menu and click the ‘Response to Outstanding Demand’ link as shown below:
‘Response to Outstanding Demand’ heading will be visible that contain details such as PAN, Assessment Year (AY), Section code, Demand Identification Number (DIN), Date on which demand raised, Outstanding demand amount, etc.
4.Click on the ‘Submit’ link under the response column. Choose any one of the listed responses.
- Demand is correct
- Demand is Partially correct
- Disagree with demand
- Demand is not correct but agree for adjustment
On choosing the “Demand is Correct”
You need to click on the submit button to ‘Confirm’ and complete the response submission process.
Note:
1. Once the option ‘Demand is Correct’ is selected, the demand cannot disagree later.
2. If any refund is due, the refund will be adjusted against the outstanding demand.
3. The taxpayer can pay the demand by clicking the link under the ‘Pay Tax’ option.
On choosing the “Demand is partially correct”
If you choose this option then follow this: Enter the ‘Amount which is correct’ and the ‘Amount which is incorrect’ (the difference between the outstanding and amount which is correct) will be auto-filled. Select the appropriate reasons from the list and fill all the applicable fields, upload the necessary supporting documents, and ‘submit’ the response.
On choosing ‘Disagree with demand’
If you select this option then go with the following step – Select the appropriate reasons 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 reasons from the list and fill all the applicable fields, upload the necessary supporting documents and ‘Submit’ the response.
A success message along with Transaction Id is displayed on successful submission of the response.
List of Reasons and the additional details required for selecting each reason:
| Reasons | Additional Details Required |
|---|---|
| Demand paid and Challan has CIN | 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/Appellate order | Date of Order Demand after Rectification/Revision/ Appeal Details of AO Upload Rectification/Revision/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 |
| Appeal has been filed – stay petition filed | Date of filing of appeal Appeal pending with Stay petition filed |
| Appeal has been filed- stay granted | Date of filing of appeal Appeal Pending With Stay granted by Upload Copy of stay |
| Appeal has been filed- Instalment granted | Date of filing of appeal Appeal Pending with Installment granted by Upload copy of installment order |
| Rectification/Revised Return filed at CPC | Filing Type e-Filed Acknowledgement Number Remarks Upload Challan Copy Upload TDS Certificate Upload Letter requesting for rectification Upload indemnity bond |
| Rectification filed with AO | Date of Application Remarks |
| Others | Others |
Note:
1. 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.
2. For the demand which is shown to be uploaded by AO, the rectification right is with the 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.
Source: e-Filing Website
If you have any queries/suggestions/replies, please do write below in the comment box.
