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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.
Table of Contents
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
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
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.
Priyanka Bajpayee has done Masters in International Business Law and well versed in content writing covering the area of legal and finance. Also, she has practical experience of almost 1.5 years in Legal compliance and secretarial work.
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