{"id":26441,"date":"2019-11-07T17:48:13","date_gmt":"2019-11-07T12:18:13","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=26441"},"modified":"2023-05-25T12:55:32","modified_gmt":"2023-05-25T07:25:32","slug":"notice-for-demand-under-section-156","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/notice-for-demand-under-section-156\/","title":{"rendered":"Notice for Demand under section 156"},"content":{"rendered":"<p class=\"has-drop-cap\">The Income-tax\nDepartment checks the income declared and tax paid by the person with the\ndetails available with them. As per the Income-tax Act 1961, if there is a\ndiscrepancy in the amount calculated and the amount paid by the respective\nperson, the <strong>notice for demand under\nsection 156<\/strong> is issued.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Why notice for Demand under Section 156 is issued?<\/strong><\/h2>\n\n\n\n<p>While processing the <strong><a href=\"https:\/\/enterslice.com\/income-tax-return-filing\">Income Tax return<\/a><\/strong> 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.<\/p>\n\n\n\n<p>Once the discrepancy is found, the intimation will be sent to the taxpayer regarding the same through the below-mentioned mode-<\/p>\n\n\n\n<ul><li>Via email and SMS under section 143(1). <\/li><li>An Online account on the e-filing website. <\/li><\/ul>\n\n\n\n<p>As per the recent income tax laws, the time limit to\nrespond to the demand notice is 30 days.<\/p>\n\n\n\n<p><strong>Note <\/strong>&ndash; In case, if the person does not respond to the\nnotice within the stipulated time, the Income-tax department will take strict\naction against the taxpayer.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Why Section 143(1) is relatable with Section 153 of\nthe Income-tax Act, 1961?<\/strong><\/h2>\n\n\n\n<p>If the intimation <strong>u\/s 143(1)<\/strong> is issued to the\nrespective taxpayer for a tax demand, then this intimation becomes <strong>Notice of\nDemand<\/strong> and which will be treated as <strong>Notice of demand u\/s 156<\/strong>.\nAccordingly, a taxpayer will be required to pay the entire amount within the\ntime mentioned in the notice.<\/p>\n\n\n\n<p><strong>Steps required to be followed by the\ntaxpayer to respond to a tax demand notice using E-filing website<\/strong><\/p>\n\n\n\n<p>The following steps are\nrequired to be followed by the taxpayer to respond to a tax demand notice using\nE-filing website-<\/p>\n\n\n\n<ol><li>On E-filing\nwebsite, login to the account by entering the respective credentials i.e.-<\/li><li>Login ID<\/li><li>Password<\/li><li>Captcha Code.<\/li><li>After Login the\naccount, click on the &lsquo;E-File&rsquo; tab and select &lsquo;Response to Outstanding Tax\nDemand&rsquo; option.<\/li><li>After selecting\nthe Response to Outstanding Tax Demand&rsquo; option. An outstanding tax demand\nnotice will appear on the screen with the following details such as <\/li><li>Assessment year\n(AY), <\/li><li>Section under\nwhich the notice has been served to the taxpayer, <\/li><li>PAN and details\nof the Tax Payee i.e. Name<\/li><li>Demand\nidentification number etc<\/li><li>The date on which\ndemand is raised<\/li><li>Outstanding\ndemand Amount<\/li><li>Uploaded by and\nRectification Right<\/li><li>Response whether\nsubmit or view<\/li><li>Pay Tax.<\/li><\/ol>\n\n\n\n<div class=\"mt-2 mb-3 inner-add-form-blog\">\n\t\t\t\t\t\t\t \t<div class=\"row align-content-center\" style=\"align-items: center;\">\n\t\t\t\t\t\t\t\t \t<div class=\"col-xs-12 col-sm-12 col-md-12 col-lg-4\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"enterslice-logo-form\">\n\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" class=\"w-100\" src=\"https:\/\/s3.amazonaws.com\/myamcatimages\/company\/images\/5220.png\" alt=\"logo enterslice\"\/>\n\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<div class=\"col-xs-12 col-sm-12 col-md-12 col-lg-8\">\n\t\t\t\t\t\t\t\t\t\t<h3>Income Tax Notice<\/h3>\n\t\t\t\t\t\t\t\t\t\t<ul class=\"check-none\">\n\t\t\t\t\t\t\t\t\t\t\t<li>Case will be handled by the Rank holder CA<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li>On-Call Advisory<\/li>\n                                            <li>Experienced Consultants<\/li>\n\t\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/enterslice.com\/income-tax-notice\" class=\"btn-learn-more\">Learn More<\/a>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t <\/div>\n\t\t\t\t\t\t\t <\/div>\n\n\n\n<ul><li>To submit a response, the taxpayer is required to click on the &lsquo;Submit&rsquo; icon in the response column for the appropriate Assessment Year. The assessee has to select one of the options mentioned below-<\/li><\/ul>\n\n\n\n<ol><li><strong>Demand is correct<\/strong> -If the taxpayer\nselects the <strong>&lsquo;Demand is correct&rsquo;<\/strong> option, then he will get a pop up with\nthis message <strong>&lsquo;If you confirm demand is correct then you cannot disagree with\nthe demand&rsquo;.<\/strong><\/li><\/ol>\n\n\n\n<ul><li>I agree with the department&rsquo;s calculations, the taxpayer is required to<strong> &ldquo;<\/strong>Click on submit and will get a success message&rdquo;. In case of any tax amount due, the taxpayer is required to pay it immediately.<\/li><li>Further, click on the hyperlink given under the column &lsquo;Pay Tax&rsquo;. <\/li><li>Click on &lsquo;Confirm&rsquo; and the person will be re-directed to the TIN website of NSDL which will help you pay. The outstanding tax amount reflecting on the account.<\/li><li>The taxpayer is required to make sure that the auto-populated information to be provided in the respective process is correct.<\/li><li><strong>Furthermore,<\/strong> the taxpayer will enter the bank details and will enter the captcha code to proceed further.<\/li><li>Once the payment is made after clicking on the submit bank button, the person is required to submit the response under the &lsquo;<strong>Response Column&rsquo;<\/strong>.<\/li><\/ul>\n\n\n\n<ul><li><strong>Demand is\npartially correct. <\/strong>If the taxpayer selects the <strong>&lsquo;Demand is partially\ncorrect&rsquo;<\/strong> option, then two amounts of fields will appear on your computer\nscreen.<\/li><\/ul>\n\n\n\n<p>A person is\nrequired to enter the amount which <strong>he believes is correct<\/strong>, as the amount\nin the incorrect column will be filled automatically as the difference between\noutstanding demand and correct amount. <\/p>\n\n\n\n<p>Further, he is\nalso required to select the reason to justify why the demand is partially\ncorrect. The reasons are mentioned on the portal which is as follows:<\/p>\n\n\n\n<div class=\"shadow2\"><p class=\"text-white font-weight-bold\">(a)Demand paid<\/p>\n<p class=\"text-white ml-5\">I) Demand paid and challan has CIN<\/p>\n<p class=\"text-white ml-5\">II) Demand paid and challan has no CIN<\/p>\n<p class=\"text-white font-weight-bold\">(b)\tDemand already reduced by rectification\/revision<\/p>\n<p class=\"text-white font-weight-bold\">(c)\tDemand already reduced by the Appellate order but appeal effect to be given<\/p>\n<p class=\"text-white font-weight-bold\">(d)\tAppeal has been filed<\/p>\n<p class=\"text-white ml-5\">(I) Stay petition filed with<\/p>\n<p class=\"text-white ml-5\">(II) Stay granted by<\/p>\n<p class=\"text-white ml-5\">(III) Instalment granted by<\/p>\n<p class=\"text-white font-weight-bold\">(e)\tRectification\/Revised return filed at CPC<\/p>\n<p class=\"text-white font-weight-bold\">(f)\tRectification filed with Assessing Officer\nOthers.<\/p><\/div>\n\n\n\n<p>Taking into consideration the above-mentioned reason, the\ntaxpayer is required to provide additional information.<\/p>\n\n\n\n<ul><li><strong>Disagree with\ndemand &ndash; <\/strong>If the taxpayer selects the C option i.e. Disagree with demand, and\nfeels that the tax demand raised by the department is incorrect, the taxpayer\nwill select the respective option, <strong>&lsquo;Disagree with the demand&rsquo;<\/strong> along with\nreasons as mentioned in option B.<\/li><li><strong>Demand is not\ncorrect but agrees for adjustment- <\/strong>By selecting the option D, the taxpayer\nis required to mention the reasons for disagreement.<\/li><\/ul>\n\n\n\n<p><strong>After selecting any of the above-mentioned options, the\ntaxpayer is required to click the &lsquo;SUBMIT&rsquo;. Once the Information is sent\nsuccessfully by the taxpayer to the department, the transaction ID will be\ngenerated, and the taxpayer can check the response by clicking the &lsquo;View&rsquo; in\nthe response column with the help of transaction ID. To know the department\nresponse, a person can check the response from the account every 10-15 days.<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Penal Provision in case of failure<\/strong><\/h2>\n\n\n\n<p>If the person to whom the tax notice for demand under\nsection 156 has been issued and he fails to pay the amount demanded within the\ntime limit prescribed under the section, the respective taxpayer is liable for\nthe below-mentioned penalties.<\/p>\n\n\n\n<ul><li><strong>Interest u\/s 220<\/strong>&ndash; Interest at the rate of 1 % each\nmonth or part thereof is payable after the expiry of the 30 days&rsquo; time provided\nunder section 156 tax notice.<\/li><li><strong>Penalty u\/s 221-<\/strong> A penalty u\/s 221 may be imposed\nby the assessing officer on the assessee but in any case, the amount should not\nbe more than&nbsp;the amount demanded in the demand notice.<\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>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. Why notice for Demand [&hellip;]<\/p>\n","protected":false},"author":25,"featured_media":26453,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1473,2435],"tags":[2808,2807],"acf":{"service_id":"127"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v14.6.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Why Notice for Demand under Section 156 is Issued<\/title>\n<meta name=\"description\" content=\"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.\" \/>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterslice.com\/learning\/notice-for-demand-under-section-156\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why Notice for Demand under Section 156 is Issued\" \/>\n<meta property=\"og:description\" content=\"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.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterslice.com\/learning\/notice-for-demand-under-section-156\/\" \/>\n<meta property=\"og:site_name\" content=\"Enterslice\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/enterslice\" \/>\n<meta property=\"article:published_time\" content=\"2019-11-07T12:18:13+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-05-25T07:25:32+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/11\/Notice-for-Demand-under-section-156.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:creator\" content=\"@enterslice\" \/>\n<meta name=\"twitter:site\" content=\"@enterslice\" \/>\n<!-- \/ Yoast SEO plugin. -->","authorName":"Priyanka Bajpayee","authorImageUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/09\/81216.jpg","authorDescription":"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.","postViews":702,"readingTime":4,"nextPost":{"id":26432,"slug":"new-guidelines-on-liquidity-risk-management-framework-for-nbfcs"},"prevPost":{"id":26379,"slug":"nbfcs-internal-audit-policy-scope-and-objective"},"featuredMediaUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/11\/Notice-for-Demand-under-section-156.jpg","postTerms":"Income Tax","_links":{"self":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/26441"}],"collection":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/users\/25"}],"replies":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/comments?post=26441"}],"version-history":[{"count":0,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/26441\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media\/26453"}],"wp:attachment":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media?parent=26441"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/categories?post=26441"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/tags?post=26441"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}