1. How to respond to Demand Notice from IT Department?
Your jurisdictional Income Tax Officer (ITO) will upload the Demand Notice online. You can access the content of this notice by logging into your e-filing account on the website www.incometaxindiaefiling.gov.in, where you can record your responses.
2. Step-by-Step Guide to Respond to a Demand Notice
Step 2: Click on ‘E-file’ and go to ‘Respond to Outstanding Tax Demand’.
You will see the following details displayed-
- Assessment year
- Section code
- Demand notification number
- Date on which demand is raised
- Outstanding demand amount
- Uploaded by
- Rectification rights
- Response – submit and view
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Step 3: Click on ‘Submit’ for the relevant assessment year. Choose one of the options mentioned below-
3. What are the options to respond to Demand Notice?
Option 1 – Demand is correct
Step 1: When you select this option, a pop-up screen appears with a message ‘If you confirm, demand is correct then you can’t disagree with the demand’.
Step 2: Click on the ‘Submit’ button.
Step 3: A success message will be displayed.
Step 4: If a refund is due, the outstanding amount and the interest will be adjusted against the refund due. Otherwise, you must pay the demand immediately. Read about how to pay your tax demand
Option 2 – Demand is partially correct
Step 1: You will see two fields to enter a correct and incorrect amount.
Step 2: Once you enter the amount in the fields, you must choose a reason for stating the department’s calculation to be partially correct.
Demand has already been paid: Provide the Challan Identification Number (CIN). Also mention BSR code, date of payment, the serial number of challan and amount. You can also add your comments under ‘remarks.’ If CIN is not available, mention that demand has been paid by challan and CIN is not available. Also, mention the date of payment, amount, and remarks (your comments), if any.
Demand has already been reduced by rectification/revision – Provide the date of order, demand amount, details of jurisdictional ITO who has rectified. Next, upload rectification/appeal effect order passed by the ITO.
Demand has already been reduced by appellate order but appeal effect has to be given by the department – Provide the date of order and the appellate order passed by (details of appellate authority, and the reference number of order).
Appeal has been filed and stay petition has been filed, or stay has been granted by, or instalment has been granted by – Provide the date of filing of the appeal, appeal pending with appellate authority e.g., CIT(A) or ITAT, stay petition filed with details of office. If the stay has been granted, you must also upload the copy of the stay order.
Rectification/revised return has been filed at CPC – In addition, please furnish the following details.
Rectification has been filed with assessing officer – Mention the date of application and remarks (comments, if any of the taxpayer).
- Filing type
- E-filed acknowledgment number
- Remarks (comments, if any of the tax payer)
- Upload challan copy
- Upload TDS certificate
- Upload letter requesting rectification copy
- Upload indemnity bond
Option 3 – Disagree with the Demand
Step 1: Upon choosing this option, you must provide details of why you disagree with the department’s call.
Step 2: You must also provide reasons for your disagreement from the available options.
Step 3: Submit your response to view a success screen with a transaction ID.
Step 4: You can revisit the response when you click on ‘View’ under the ‘Response’ tab.
Step 5: You can view the serial number, transaction ID, date of response, and response type will be displayed.
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