How to Respond to Outstanding Income Tax Demand- Faqs

1. Why do I need to submit response to an outstanding demand?

The Income Tax Department may find some Outstanding Tax demand against your PAN. In order to confirm if the stated demand is correct, an opportunity is given to you to respond. If you do not respond to it, the demand will be confirmed and will be adjusted against your refund (if any) or show as demand payable against your PAN ( in case, no refund is due).

2. How do I know if there is any outstanding demand pending against my PAN?

You can check if there is any outstanding demand through the e-Filing portal. Log in to e-Filing portal and click Pending Actions >Response to Outstanding Demandand you will be taken to Response to outstanding demand page. If there are demands outstanding against your PAN, the current status against each of the past / existing outstanding demands will be updated as Pending payment / Response. Accordingly, you can click Pay Now / Submit Response. Additionally, you will receive a message on your email ID and mobile number registered on the e-Filing portal.

3. What can I do if I disagree with the amount of outstanding demand?

You can choose Disagree with demand (Either in Full or Part). After you select the option, you need to select from the list of reasons for which you disagree with the amount of demand. After you have selected from the list, you would need to provide details for each of the reasons before you submit your response. In case you partially disagree with the demand, you should pay the portion of the demand which is undisputed (i.e. with which you agree).

4. What can I do if the reason of disagreement with the outstanding demand is not listed?

You can select Others as a reason after you choose Disagree with demand (Either in Full or Part). After selection, you can enter the details for your reason and the applicable amount not payable under the mentioned reason.

5. Where can I view the past responses I submitted?

After you log in to e-Filing portal, click Pending Actions >Response to Outstanding Demand and you will be to the Response to outstanding demand page. Among the list of past and the existing outstanding demands click on View against the particular demand. You will only be able to see the View option for the demands for which you have already submitted at least one response.

6. While selecting reasons in Response to Outstanding Demand page, I am getting the message – No reords found for revised/rectified return for the assessment year. What can I do?

Please try again. If the problem persists, please validate the Acknowledgement no. received after submission of your Rectification / Revised Return request.

7. How do I pay the outstanding tax demand?.

You can make payment of your Income Tax Demand through the e-Filing portal in the following ways:

  • Directly pay tax by clicking the Pay Now option for the respective DRN (Demand Reference Number) on the Response to Outstanding Demand page; or
  • Using the Pay Now option while submitting the response to the outstanding demand (in case you agree or you partially agree with the outstanding demand).

8. What are the different ways in which I can make payment?

You can make payment through the e-Filing portal. You can use the following online methods to make tax payment:

  • Net-banking; or
  • Debit Card; or
  • Payment Gateway (using Credit Card/Debit Card of Non-Authorized Banks/Net Banking of Non-Authorized Bank/UPI)

You can use the following offline methods to make tax payment:

  • NEFT / RTGS (the Mandate Form generated may be submitted to the bank or used for online transfer using Net-banking); or
  • Pay over the Counter (through Cash / Cheque / Demand Draft).

Refer to the Make Payment Online and Make Payment Offline user manual to learn more.

9. What if I do not have the copy of the challan to be attached? Where can I find it?

You can reprint / regenerate your challan from your respective bank account using Net Banking or visiting the bank branch.

How to Respond to Outstanding Income Tax Demand- Manual

1. Overview

The Response to Outstanding Demand service allows all registered users on the e-Filing portal to view and / or submit response to an outstanding demand on the e-Filing portal, and pay the outstanding demand, wherever applicable. With this service, you can submit your response to outstanding tax demands raised by:

  • Centralized Processing Centre; or
  • Assessing Officer

2. Prerequisites for availing this service

  • Registered user on the e-Filing portal with valid user ID and password

3. Step-by-Step Guide

3.1. Respond to Outstanding Demand (for Taxpayers)

Step 1: Log in to the e-Filing portal with your user ID and password.

Step 2: On your Dashboard, click Pending Actions > Response to Outstanding Demand to view a list of your outstanding demands.

Note: If you wish to pay the demand, you can click Pay Now to pay a demand. You will be taken to the e-Pay Tax page where you can make the tax payment.

Step 3: On the Response to Outstanding Amount page, click Submit Response to submit a response to an outstanding demand.

Depending on the scenario, you can go to the relevant section:

If the Demand is correct and you have not paid already Refer to Section 3.1 (A)
If the Demand is correct and you have paid already Refer to Section 3.1 (B)
If you Disagree with the demand (either in Full or in Part) Refer to Section 3.1 (C)

Note: To view all the responses submitted by you, on the Response to Outstanding Amount page, click View against the particular demand.

3.1 (A) Submit response if Demand is correct and you have not paid already

Step 1: On the Response to Outstanding Amount page, select the Demand is Correct option and the disclaimer Once you submit the response as Demand is correct, then you cannot Disagree with Demand later on.

Step 2: On the same page, select Not paid yet option and click Pay Now.

Note: You will be taken to the e-Pay Tax page where you can make the tax payment.

On successful payment, a success message is displayed along with a Transaction ID. Please keep a note of the Transaction ID for future reference.

3.1 (B) Submit response if Demand is correct and you have paid already

Step 1: On Response to Outstanding Amount page, select the Demand is Correct option and the disclaimer Once you submit the response as Demand is correct, the you cannot Disagree with Demand later on. 

Step 2: Select Yes, Already paid and Challan has CIN. Click Add Challan Details.

Step 3: To add the challan details, select Type of Payment (minor head), enter Challan AmountBSR CodeSerial Number and select Date of Payment. Click Attachment to upload the copy of the challan (PDF) and click Save.

Note:

  • The maximum size of a single attachment should be 5 MB.
  • If you have multiple documents to upload, put them together in a zipped folder and upload the folder. The maximum size of all the attachments in a zipped folder should be 50 MB.

Step 4: After entering the Challan details, click Submit to submit the response and the details of challan entered.

On successful validation, a success message is displayed along with a Transaction ID. Please keep a note of the Transaction ID for future reference.

3.1 (C) Submit response if you Disagree with the demand (Either in full or in Part)

Step 1: On Response to Outstanding Amount page, select Disagree with the demand (Either in full or in Part) option. Click Add Reasons.

Step 2: To select the reason(s) for your disagreement, select from the options and click Apply. (You can select one or more options.)

__

Step 3: After selecting the appropriate reasons for your disagreement, select each reason you listed in Step 2 on the Response to Outstanding Amount page and enter the appropriate details for each reason.

Note: Completed status will be displayed against the reason for which you have submitted the details.

Step 4: After submission of details for all the reasons listed in Step 2, click Pay Now to pay the remaining outstanding amount available in the payment summary (if you partially disagree).

Note: You will be taken to the e-Pay Tax page where you can make the tax payment.

Step 5: After payment, you will be taken to the Response to Outstanding Amount page, click Submit to submit your response.

Step 6: Click Confirm to confirm your submission.

On successful submission, a success message is displayed along with a Transaction ID. Please keep a note of the Transaction ID for future reference.

3.2. View Submitted Responses (for other than Taxpayers)

Step 1: Log in to the e-Filing portal using valid user ID and password.

Step 2: On your Dashboard, click Services > Response to Outstanding Demand.

Step 3: On the Response to Outstanding Demand page, enter the PAN of the assessee (your Client) and click Search.

Note: You can search based on the Assessment Year or DIN.

Step 4: From the list of responses submitted by the assessee whose PAN you entered in Step 3, click View on the particular notice to view the response submitted by the assessee.

Step 5: Details of the response to the outstanding demand will be displayed. Click Ok to go back to previous page.

4. Related Topic

  • Login
  • Dashboard and Worklist
  • Rectification Request
  • Tax Credit Mismatch
  • Add Clients
  • View Client Details
  • Rectification status
  • My Bank Account

More Under Income Tax

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