How to send a response to an Income Tax Demand Notice
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How to send a response to an Income Tax Demand Notice

If you remember, the due date of e filing income tax return was 31st July 2017 for the assessment year 2017-18, and we assume that you have already filed your ITR for the fiscal year 2016-17. When you completed your income tax return online, you could verify it right away using your Aadhaar details.

Once you finished the verification thing, the income tax department did a cross-check on the information you provided in your ITR, such as the income declared and its corresponding tax paid by you for that financial year.

You would receive an intimation regarding the acceptance of your ITR u/s 143(1), in case the officer found the data matching. On the flip side, if your data didn’t match, you would get either a tax refund notice or an income tax demand notice.

You are eligible for a tax refund only if you had paid more tax than what the IT officer calculated. However, you would get a demand notice concerning your tax outstanding, in case you had paid less income tax than what the IT officer calculated. In such a case, you would have to meet an IT officer as per the date and time mentioned in the notice you had received.

Respond to Income Tax Demand Notice Online

The government of India is going to make the procedure of sending a response to an income tax demand notice easier by making available the e-assessment method. You will need to log into your e-filing account on the official website of the Income Tax Department.

Mentioned below are the steps that you need to follow in order to respond to an income tax demand notice:

  1. Open https://incometaxindiaefiling.gov.in/ and log in using your credentials, i.e. user ID (your PAN card number), Password, along with your Date of Birth, and given Captcha code.

e filing income tax login - income tax demand notice

2. Under the e-File tab, select the Response to Outstanding Tax Demand menu. This will redirect you to a new page.

Response to Outstanding Tax Demand

3. On the new page, enter your PAN number and given Captcha Code, and click on the Submit button.

Response to Outstanding Tax Demand-2

4. Now, you will see an outstanding tax demand notice and with certain details like Assessment Year, Section Code, Demand Identification Number etc.

Response to Outstanding Tax Demand view

5. Below the Response column, click on the Submit link for the particular assessment year to send your response. Further, you will have to choose one of the following options:

Demand is Correct

  • If you choose this option, a pop-up appears showing a message “If you confirm demand is correct, you cannot disagree with the demand.” Click on the Submit button to agree with the IT department’s calculation, and then you’ll have to pay the remaining tax. Below the Pay Tax column, click on the given link to proceed to the TIN website to pay the outstanding tax. Make sure you read the information and see if it’s correct.

Demand is Partially Correct

  •  If you choose this option, you’ll have two amount fields in front of you. You’ll see that the amount in the incorrect column is auto-filled. This amount should be the difference between your outstanding amount and correct amount. In the other column, you’ll need to enter the amount that is correct as per your calculation.
  • You’ll also need to select the reason why you think that the calculation done by the IT department and the subsequent demand is partially correct.
  • Depending on the reason you select, you’ll need to provide more information.

Disagree with demand

  •  If you choose this option, you will have to select and correspondingly provide additional information regarding your disagreement with the demand (as in the previous step).

Demand is not correct but you agree for adjustment

  • If you choose this option, then you will have to mention you the reason why you think that the demand is incorrect.

6. Once you’ve entered the required information, click on the Submit button to proceed.

A transaction ID will be auto-generated once the information provided by you is successfully sent to the IT department. You can also check the response you just sent by clicking the View link below the Response column (as mentioned in step 5 above). Click the Transaction ID to view the details.

Image(s) Source: The Economic Times