How to pay Outstanding Income Tax Demand online?

Outstanding income tax demand notice

The various steps of Income Tax filing are – Filing Income Tax Returns, Mailing ITR V form to Centralized Processing Cell (CPC- Bangalore) and Receiving acknowledgment for ITR V.

After receiving the ITR V acknowledgment, sometimes you may receive an email from Income Tax Department within one year of Filing the Tax Returns. This email may contain ‘Intimation Under Section 143(1).’

What is Intimation U/S 143(1)?

Outstanding Tax demand 143(1) - 1

The intimation would show the income tax return as filed by you and the computation as done by the Income Tax Department (as below).

Outstanding Tax demand notice143(1) - 2

Income Tax Department generally sends Intimation Under Section 143(1) for two main reasons:

  • To inform you about any outstanding Income Tax demand or Interest payable by you (or)
  • To inform you about any tax or interest refundable to you.  Outstanding income Tax demand and refund143(1) - 3

If it is a tax refund intimation then you don’t have to do anything. In case if it is “Tax Demand” (tax payable by you) and you are satisfied with the computation done by the Income Tax Department, then you should pay the amount of Tax payable as per Section 143(1).

In the above image, the refundable amount is zero and the interest payable amount is Rs 120. (The intimation u/s 143(1) is sent for tax/interest demand of Rs 100 and above only).

You can also login to your e-filing account and check if there is any ‘estimated tax demand’ which is due in the ‘dashboard’ itself. If there is no ‘tax due’ then it is shown as NIL and if there is a due amount then it is shown opposite to ‘demand estimated’.

check income tax demand estimated

Generally you are requested to pay the entire Tax demand within 30 days of receipt of the Intimation.

How to pay Outstanding Income Tax demand u/s 143(1) online?

The outstanding tax demand can be paid online as below:

  • Log in to and click on “Pending Actions” option.
  • Cross-check the outstanding tax demand amount by clicking “Response to Outstanding Tax Demand” link under ‘e-File menu ‘Pending Actions’ option as shown below.
pending actions response to outstanding demand notice
  • If you wish to agree with the demand and pay the due, you can click Pay Now to pay a demand.
Pay outstanding income tax demand due online efiling portal
  • You will be taken to the e-Pay Tax page where you can make the tax payment.
agree tax demand is correct and pay online

  • On the new window, select “Challan no /ITNS 280” option.
  • Select “ Income Tax – Other than companies” option. All required information shall be auto populated from PAN Master.
  • Select “ Tax on Regular Assessment (400) under “Type of payment” section.
  • Select your preferred bank through which you would like to make the tax payment.
  • Click on “Proceed” button and re-confirm your details. You need to click on “Submit to Bank” button to make the payment.
  • Next you will be taken to your Bank’s Login page. Login to your bank account with your credentials.
  • In the next page you will be asked to enter the Demand amount. You may find different options like income tax, surcharge, Education cess, Interest, Penalty and Others. To find out the type of demand you can check the Intimation document. The below image is an example of demand notice for “Interest” payable. Outstanding Tax demand 143(1) - 8
  • After entering the required amount, you can make the payment using your net-banking facility. An online receipt will be generated like the one below. Save it for your reference.
    • Outstanding Tax demand payment bank counterfoilOutstanding Tax demand bank counterfoil
  • Submit response if Demand is correct and you have paid already
Submit response to income tax demand
  •  On 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. 
Response by tax assessee
  • Select Yes, Already paid and Challan has CIN. Click Add Challan Details. 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. 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.
add tax payment challan details bsr code
  •  You can also submit response if you Disagree with the demand (Either in full or in Part).
disagree with income tax demand notice submit response

How to check the status of my tax demand payment online?

The best way to check the status of your payment i.e., whether the Income Tax department has received your payment or not is by accessing your Form 26AS. Try checking the status after 2 to 4 weeks from the date of your demand payment.

  • Visiti e-filing portal, click on e-file -> Income Tax Returns -> View Form 26AS
Outstanding Tax demand 143(1) - 12
Outstanding Tax demand 143(1) - 13

You can visit Go to “Pending actions”, click on ‘Response to Outstanding Demand’ and check the status. If your payment is received by the IT department then you may find no records. You may also check the status of your tax demand by clicking on “View Form 26AS.You will be redirected to “TDS website.” Click on “View Tax Credit –Form 26AS.” Select the specific Assessment Year and “View as” PDF format. Click on “Download.”To open the Form 26AS PDF document, you have to enter your Date of Birth (as printed on your PAN card). Go to “Part C – Details of Tax Paid.” There should be an entry with the details of your Outstanding Income Tax Demand payment (as below image). I hope this post is useful and informative. Have you received Income Tax demand notice anytime? Did you pay the taxes online or offline? Kindly share your comments.

(Add IT department’s email-id “ ” to your email a/c contacts list, if not added). For any clarification you can reach the IT dept helpdesk on Toll free # 1800 309 0130/1800 2033 5435.

Continue reading:

  1. Income Tax Exemption Vs Tax Deduction Vs Tax Rebate Vs TDS | Key Differences
  2. Income Tax Deductions List FY 2023-24 | Under Old & New Tax Regimes

( Image courtesy of Stuart Miles at

About The Author

  • Manju Kannan says:

    Sir, i have paid the outstanding demand of (AY 2009) in full and updated the same. later i noticed Final interest Rs.4785 is showing as demand. while trying to pay the same (through pay now option in response to outstanding demand menu ) i have a confusion in respect of updating the ” add tax breakup details” stage ((a) Tax (b) Surcharge (c) Cess (d)Interest (e) Penalty (f)Others) – where to feed the amount of Rs.4785/-

    • Sreekanth Reddy says:

      Dear Manju,
      You may kindly declare it as Interest as the demand says it so.
      Your form 26AS should reflect this payment in couple of weeks, do check it!

  • Sumi says:

    Really helpful. Thanks for such a detailed information. I have paid the demand but still its not reflecting in outstanding demand and status of ITR is in-progress. Should I do anything from my end ?

  • A Nandy says:

    Very useful post.

  • Debasis Dhar says:

    Outstanding Notice 143(1)(a) and 220(2)

    My Father-in-Law have filed wrong ITR (shown higher income when compared to Form 16) offline for AY 2011-12 and AY 2012-13. Outstanding Demand Notice was received then but not answered. Outstanding demand under 143(1)(a) was adjusted against refund for ITR filed for AY 2019-20. On 13 Sep 2019 again Outstanding Demand Notice under 220(2) recd and was not responded yet. Refund against ITR for AY 2020-21 stuck. What should I do next ?

  • umed singh says:

    sir, i have alredy paid the outstanding tax of 1750 at the time of return filing
    now i got 143 1 a demanding the same amount again
    should i disagree with demand, its also showing in traces

  • AC says:

    Hi Sreekanth,

    Thanks for your detailed article. I found an old demand in my late mother’s income tax account. The demand was because of a TDS mismatch, but since it has been a long time, I could not get the mismatch corrected.

    So, I decided to pay the demand last week, and also included u/s 220(2) interest (at 1% pm)—I included this in a single challan (with minor code 400).

    The total amount paid has appeared in form 26AS, and one day after it appeared, the original demand was removed from the e-filing site. However, that same day, a new demand for the 220(2) interest has appeared.

    It has been 3 working days since the new demand appeared. I wanted to know if this demand will automatically be settled with the additional amount I paid with the challan (I have checked that the total of old demand + new interest demand is less than the amount I paid with the challan).

    Have you seen such cases before ? Should I wait for a few more days, or contact ITD ? I am an NRI, so having to do this remotely.


  • Sai chand says:

    Thank you for the information Sreekanth it was very useful to me

  • Vijay P says:

    Dear Sreekanth,

    Thank you so much for the information. I had received intimation 143 dated 10.12.2019 with a net payable as Rs. 10/-. And the response from the IT website in “Response to Outstanding Payment” was “No Records found”.
    I was quite worried about what needed to be done, and then i came across your comment regarding amounts smaller than Rs. 100/-, that it can be ignored. I also found the Govt. Of India Press note that states the same. It was a great relief to find the relevant information.

    Thanks and Regards,

    • Sreekanth Reddy says:

      Thank you dear Vijay and glad to know that you find information available here useful..Keep visiting!

  • >
    Scroll to Top