Online facility for Response to Outstanding Income Tax Demand

Many a times there are Mis match between TDS shown in Form 16 / Form16A and actually deposited by Employer / Other party. However at the time of filing Income Tax Return the assessee claims full TDS as per TDS certificate received. Due to this at the time assessment CPC / AO send intimation of Demand. Further there are various reason and stages where demand raise, however there is no consolidated date based of status of each demand. To make it easier for assessee and to fasten the process Income tax Department has made online option available to update and Reply for any

Outstanding Demand Notice Received by Assessee.

You need to visit income tax Site https://incometaxindiaefiling.gov.in  under option My Account select Demand Status. You will get details of Record as per CPC, Section in which demand raised, Demand Identification Number, Date of Demand Raised, Outstanding Amount, Upload by, and Rectification Rights, and option for Submitting Response and to View Response.

Currently Income Tax Department has made available three online options for Assessee to Reply to the Demand Raise.

1. Demand is Correct:  Once this option is selected you cannot change later

2. Demand is partially Correct : You need to mention amount of demand which is partially correct and partially incorrect

3.  Disagree with Demand : There are multiple option which one can select depending upon situation

a. Demand Paid – In case of No CIN number assessee has to provide details of amount paid  number, Date of Payment, Amount and Remarks if any. Assessee can also upload the Challan Copy with maximum size of file as 50MB. In cases were there is CIN No available provide details of BSR Code, Date of Payment, Serial Number of Challan, amount and Remark. There is no need to upload the Challan Copy.

b. Demand already reduce by Rectification / Revision – In case were rectification / revision letter is filed with AO, we need to provide details of order date, amount, AO number and upload copy of order passed by AO with maximum size of file as 50MB.

c.Demand already reduce by Appellate Order but appeal effect to be given – In case were Appellate Order has been passed we need to provide date of Order, order passed by High Court / CIT / SC / ITAT, reference no of Order and Demand after appeal effect

d. Appeal Has been Filed – In cases were appeal has been Filed we need to provide Stay Petition Filed with High Court / CIT / SC / ITAT and Date of Appeal. Or Stay Granted by High Court / CIT / SC / ITAT and Date of Appeal and also upload copy of Order with maximum size of file as 50MB. Or Installment granted details by AO / Add CIT / High Court / CIT / SC / ITAT and Date of Appeal and also upload copy of Order with maximum size of file as 50MB

e. Rectification / Revised Return Filed with CPC – We need to Select option from Rectification  or Revised, mention E Filing Ack No, Remarks and upload Challan Copy, TDS certificate, Letter Requesting Rectification, and Indemnity Bond with maximum size of file as 50MB

f. Rectification File with AO – We need to mention date when filed for rectification and Remarks if any

g. Others – We can mention various reasons why we disagree with the demand in the remarks column.

Following are the additional Notes which need to be kept in mind while replying:

1. Kindly validate all the demands as per your records.

2. In case, you confirm “Demand is correct” then the demand will be taken up for adjustments against refund.

3. In case, you “Disagree with demand”, then please furnish details for disagreement along with reasons thereof.

4. Please contact assessing officer or concerned Income Tax Authority for further details in case rectification has been sought or if any petition has been filed. To know your assessing officer, Logon on www.Incometaxindiaefiling.gov.in go to service Tab then click Know your Jurisdictional A.O

5. To request for resend of orders from CPC, please select Resend of intimation request

6. Demand position gets updated every day

7. Interest demand u/s (2) is linked to the principal demand of the same assessment year. This indicates that principal demand is already adjusted / paid and interests demand is only outstanding value. Hence does not require any confirmation.

8. If demand is shown to be uploaded by AO in the above table and rectification right is with Assessing Officer, please contact your jurisdictional Assessing Officer for the same.

9. For the demand against which there is “No Submit response option” available such demand is already confirmed by Assessing Officer. Kindly contact your Jurisdictional Assessing officer.

For any query you can write to Chirag@cachauhan.in . Before making any decisions do consult your Professional / tax advisor.  Author does not take any responsibility for misrepresentation or interpretation of act or rules. Neither the author nor the firm accepts any liability neither for the loss or damage of any kind arising out of information in this document nor for any action taken in reliance there on.