Income Tax Arrear Letter from CPC Bangalore just a communication of demand not a demand notice, No need to respond to tax notices for below Rs 100

It has been reported in some sections of the press that the Central Processing Centre , Bangalore  is sending notices for  payment of taxes which are as small as Rs. 1/- , 4/- ,  6/-, causing unnecessary hardship to assesses . It  has been stated that  when the refunds for amounts less than Rs. 100/- are not issued by the Income Tax Department, then the demand for less than Rs. 100/- should also not be collected .

Clarification in this regard is as follows:

Arrear Demand Communication

            The Income Tax Department  has created a central repository of all demands for better demand management as required by Standing Committee of Parliament and C&AG. To achieve this, all officers were asked to collate demand lying at various places viz. IRLA, TMS and manual registers and upload onto CPC portal. This was also part of the annual action plan. Consequently AOs have uploaded the same. During a meeting with Bangalore Chartered Accountants association, it was suggested that taxpayers should also be informed about the same so as to enable them to take necessary action if the outstanding demands were incorrect. This measure was aimed at providing greater transparency. Therefore, a communication has been sent to taxpayers informing them about existing arrears. It may be clarified that this communication is not a demand notice. This measure is, in fact, an assessee -friendly exercise. The Department has also written to all chief commissioners to amend such entries, if found incorrect, when  approached by taxpayers. This would correct the database if a taxpayer has proof of payment etc. As per extant procedure, demand of less than Rs. 100 is not enforced but is liable for adjustment against future refunds.

Department of Revenue, Ministry of Finance

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0 responses to “No need to respond to Income Tax tax notices for below Rs 100”

  1. santh says:

    how to open detailed cpc letter i want detailed statement

  2. SATYA PRAKASH says:

    CPC sending incorrect demand notices to delay the refund. When the amont deposited is shown in 26AS statement, then how the mistakes are done by CPC can not be understood by lay men. Same thing happened in wife case also.

    Further the file is not uploaded and rectification is not possible as the table is not given for the assessment year 2011-12. On 22.12.2011, the CPC help desk also could not open the rectifiation file upto 25 minutes and advised me to do so after fifteen days.

    In my experience the taxpayer should not file online tax, as it is faulty and cumbersome in comarison to previos one.


  3. G. Padmanabhan says:

    “As per extant procedure, demand of less than Rs. 100 is not enforced but is liable for adjustment against future refunds.”

    If it is even pea nuts, the department will adjust against future refunds. Then what about crores of rupee refundable in small quantities less than Rs. 100 in each case, year after year to the assessees? Does the department have any mechanism to accumulate such refunds and return the same when the total crosses Rs.100 in each case? Anarchy of the bureaucracy. Cranky guys think in crazy manner. The beggarly attitude of the department exposes the petty mindedness of these guys.

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