After filing of the Income Tax Returns, the next step of the e-filing process is verification. The Income Tax Department checks the income declarations and tax paid to see whether all these details matched. Thereafter the IT Department will accept the tax return filed as per Section 143(1).
On checking if IT department found any discrepancy in return regarding Tax payment or may be any other issue it sent notice to assessee, if the taxes paid are found to be less they will issue a demand notice.
However, the following are the are Steps to file a response to the outstanding tax demand
Step 1: Firstly, Assessee needs to login to www.incometaxindiaefiling.gov.in with his/her Assessee ID, Password, and Date of Birth/ Incorporation.
Step 2: Go to e-File and thereafter Response to Outstanding Tax Demand.
Step 3: Enter your PAN number and fill relevant details and click on the Submit button.
Step 4: After successful validation, if there is any Outstanding Tax Demand, the ‘Response to Outstanding Tax Demand” is available with the following details.
Step 5: Assessee must click on the download button under the outstanding demand amount column for the respective WAY to View/Download the Tax and Computation PDF so that the assessee can also determine the reason for outstanding demand that was raised from the IT Department.
Step 6: On understanding the reason for the outstanding amount, a column Pay Tax is available for online payment of outstanding tax demand. Under this column, a link Click here should be displayed.
Step 9: On Successful Submission, the assessee shall be redirected to the TIN website to pay the tax. All required information shall be auto-filled from PAN Master.
Step 10: Assessee needs to select the Bank Name and enter the relevant details that are available on the website of TIN and click on the Proceed button. Successful Validation, the following details shall be displayed to the assessees.
Step 11: Click the “Submit to Bank” button to make the payment.
Step 12: One must click on the Submit link under the Response column for the respective WAY to submit the response.
Step 13: If assessee selects Demand is correct, then a pop up will come up as If you confirm Demand is correct then you cannot Disagree with the demand. Click on Submit. A success message is displayed and no further action is required.
Step 14: If the assessee chooses Demand is partially correct, then two amount of fields will be available.
- Correct amount – Enter the incorrect amount. If the demand amount is equal to the amount entered here, then one pop will be shown since the amount entered is equal to the outstanding demand amount, please select the option Demand is correct.
Note: If the outstanding amount and the amount entered is equal then assessee shall not be allowed to submit with this option.
- Incorrect amount: The amount is auto-filled which is the difference Aries between the outstanding amount and amount which is correct.
Step 15: If the amount entered is not equal to the outstanding demand amount than assessee should mandatorily fill one or more reasons listed below-
- Demand Paid
- Demand paid and No CIN in challan
- Demand paid and challan has CIN
2. Demand already reduced by rectification/revision
3. Demand already reduced by Appellate Order but appeal effect to be given
4. Appeal has been filed
- Stay petition filed with
- Installment granted by
- Stay granted by
5. Revised/Rectified Return filed at CPC
6 Rectification filed with AO
7. Others
Note: Attachments size should be up to 50 MB.
Step 16: If the assessee selects Disagree with the Demand, then the assessee must furnish the details for disagreement along with reasons. The reasons are the same.
Step 17: If the assessee selects, Demand is not correct but agrees for adjustment, the assessee must furnish the details for disagreement along with reasons. Reasons are the same as provided under: Demand is not correct but agrees for adjustment.
Step 18: Fill the details and click on the Submit button.
Step 19: After the assessee submits the response the success screen must be displayed along with the Transaction ID. The success message is as follows.
Step 20: Assesses can click on the View link under the Response column to view the response submitted. The following details are displayed.
a. Transaction ID a hyperlink
b. Date of Response
c. Response Type
