We file Income Tax Return by assessing our income on the basis of income received. However, the...
The Income-tax Department checks the income declared and tax paid by the person with the details available with them. As per the Income-tax Act 1961, if there is a discrepancy in the amount calculated and the amount paid by the respective person, the notice for demand under section 156 is issued.
While processing the Income Tax return of the taxpayer, if the tax department comes to know that more tax is due from the respective taxpayer than paid by him/her and the same is declared in the Income-tax return, then the respective taxpayer would normally get a demand notice.
Once the discrepancy is found, the intimation will be sent to the taxpayer regarding the same through the below-mentioned mode-
As per the recent income tax laws, the time limit to respond to the demand notice is 30 days.
Note – In case, if the person does not respond to the notice within the stipulated time, the Income-tax department will take strict action against the taxpayer.
If the intimation u/s 143(1) is issued to the respective taxpayer for a tax demand, then this intimation becomes Notice of Demand and which will be treated as Notice of demand u/s 156. Accordingly, a taxpayer will be required to pay the entire amount within the time mentioned in the notice.
Steps required to be followed by the taxpayer to respond to a tax demand notice using E-filing website
The following steps are required to be followed by the taxpayer to respond to a tax demand notice using E-filing website-
A person is required to enter the amount which he believes is correct, as the amount in the incorrect column will be filled automatically as the difference between outstanding demand and correct amount.
Further, he is also required to select the reason to justify why the demand is partially correct. The reasons are mentioned on the portal which is as follows:
I) Demand paid and challan has CIN
II) Demand paid and challan has no CIN
(b) Demand already reduced by rectification/revision
(c) Demand already reduced by the Appellate order but appeal effect to be given
(d) Appeal has been filed
(I) Stay petition filed with
(II) Stay granted by
(III) Instalment granted by
(e) Rectification/Revised return filed at CPC
(f) Rectification filed with Assessing Officer Others.
Taking into consideration the above-mentioned reason, the taxpayer is required to provide additional information.
After selecting any of the above-mentioned options, the taxpayer is required to click the ‘SUBMIT’. Once the Information is sent successfully by the taxpayer to the department, the transaction ID will be generated, and the taxpayer can check the response by clicking the ‘View’ in the response column with the help of transaction ID. To know the department response, a person can check the response from the account every 10-15 days.
If the person to whom the tax notice for demand under section 156 has been issued and he fails to pay the amount demanded within the time limit prescribed under the section, the respective taxpayer is liable for the below-mentioned penalties.