Categories: Tax Planning

How to pay Outstanding Income Tax Demand online?

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)?

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

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. 

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’.

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 www.incometaxindiaefiling.gov.in 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.
  • If you wish to agree with the demand and pay the due, 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.

  • 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.
  • 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.
  • Submit response if Demand is correct and you have paid already
  •  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. 
  • 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.
     
  •  You can also submit response if you Disagree with the demand (Either in full or in Part).

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

You can visit www.incometaxindiaefiling.gov.in. 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 “ intimations@cpc.gov.in ” 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 FreeDigitalPhotos.net)

This post was last modified on January 14, 2024 9:46 pm

Sreekanth Reddy

Sreekanth is the Man behind ReLakhs.com. He is an Independent Certified Financial Planner (CFP), engaged in blogging & property consultancy for the last 14 years through his firm ReLakhs Financial Services . He is not associated with any Financial product / service provider. The main aim of his blog is to "help investors take informed financial decisions." "Please note that the views given in this Blog/Comments Section/Forum are clarifications meant for reference and guidance of the readers to explore further on the topics/queries raised and take informed decisions. The information provided, therefore, should not be viewed as financial, legal, accounting, tax or investment advice."

View Comments

  • Hello,
    I have received intimation , under tax payable as per computed net payable amount is Rs. 3 /- and net amount payable shows Rs. 0 /-.
    do I need to do something or theres nothing to worry about ?

  • Dear Shri Sreekanth Reddy, This is with reference to my query dt 10.8.2015 and your subsequent clarifications. My payment was accepted and subsequently, I was asked to make further payment of Rs 530 as interest u/s 220(2). I made that payment also. Now, my pending actions are closed and now displayed as "No pending actions".

    This message is to express my sincere thanks for your guidance for closure of outstanding demand under my pending actions.

      • Dear Shri Manirul, I made entry as per the clarification given by Shri Sreekanth Reddy in his reply dt 13.8.2015. Your entry shall be based on the section under which notice is issued to you. Further, I feel that if demand is u/s 245 with section code 143(1), the amount may be indicated against "tax" also although I indicated against "penalty"and cleared by IT dept. (This is my opinion and I do not have any expertise in this field.) If section code is 220(2), the amount is to be indicated against ïnterest". I feel that what is more important is ---the major head, minor head, challan number, assessment year etc are to be correctly indicated as outlined in this article.

        • Dear Gopal, thank you for sharing your inputs.

          Dear Manirul, You can pay against 'tax' . As Gopal said, make sure the other important details are correct.

  • In AY-2010-11 I worked for two companies, Previous company for 2 months (apr, may) but did not received form-16, so I have submitted return for present company's income by hard copy. Now in AY-2015-16 I got a intimation U/s 245 which says that refund so determined will be adjusted against outstanding demand. Outstanding demand is shown for 2010-11 though I have not received any intimation then. When I checked form-26AS ( in 2010 i dont know about this), it shows some amount paid by previous company but did not cut TDS, I checked bank statement of 2010 and it confirm the payment for final settlement. Now I want to pay the outstanding demand as explain by you ( heart-full thanks), please guide in which head I shall paid the demand like "income tax, surcharge, Education cess, Interest, Penalty and Others" Pls. Help.

  • Hi Sreekanth,

    I have to pay the IT demand notice amount for the FY 2013-14. I gone through the procedures above for online payment, but i having one doubt. How do we calculate the interest and penalty amount. I am having demand notice for amount 6140. Could you help me paying the amount through online?

    Thanks,
    GK.

    • Dear Gopalakrishnan, you can follow the steps given in the article and make the payment. Do you agree with the IT dept's demand?

      • Sreekanth,

        I have accepted the demand amount (raised on 07/02/2014), but in order to calculate the interest and payment break down while making the payment raised a query to you. I have done the payment break down for the demand amount 6140. Please correct if anything wrong in the below break down

        Basic Tax = 6140 / 1.03 = 5961
        Edu Cess = 6140-5961 = 178
        Interest = 6140 * 16 * 1 /100 = 982
        Total = 7121 Rs.

        Regards
        GK.

        • Dear Gopalakrishnan,
          I have observed that IT dept accepts the payment even if you pay the entire dues under the head say 'Taxes' or 'penalty'.

  • Hi.. I had received the demand for Interest Payable. I have paid that one through online, but while filling the form I had selected option (300) Self Assessment Tax instead of (400) Tax on Regular Assessment. Since I was not aware about the options to choose.

    I am seeing the entry in my Form 26AS for the tax amount paid but which is under Minor Head - 300.

    After paying for requested demand, still it is showing me the Demand under Pending Activities on Dashboard. Do you have any idea on this ?

    • Dear Chetan,
      Taxes paid under '300' can be adjusted with your future tax dues. I believe it is better to make payment under the head '400' again. What is the outstanding due amount?
      You may check with IT dept. Click here for Contact numbers.

  • Dear Sreekanth,

    After paying the amount mentioned in demand notice, should we file the IT returns again? If yes, can you please share the details as to how to re-file the Returns?

    • Dear Ashok..No it is not required. You may just cross check your Form 26AS if your tax payment is reflected or not.

  • i unknowingly submitted outstanding demand notice u/s 1431a as agreed... how to retrieve that and i submitted grievance will it works in favour....

    • Dear Prabha..I do not have answer to your query. Request you to consult a Taxation expert or a CA. I will surely try to find out the answer.

  • hi..my c.a has done the computation for this year..i have to pay some 10k as tax..but he has asked me to transfer it to his account so that he pays it online..is that ok? and can you please share a sample copy of a challan..wanted to have a look at it..thanks

  • I have not received intimation for outstanding demand but it is showing in the website. How can i request the intimation details again.

    • Dear Abhishek,
      For which Assessment year this demand belongs to?? Under which section did you receive the intimation?
      You can request through IT E-filing website.

  • Hi Sreekanth
    Your article on payment of outstanding tax demand is really very useful. I followed this article to clear my tax demand , when I was terribly confused and helpless on how to go about it.
    Thanks a lot . Good wishes.

1 13 14 15 16 17 21
Share
Published by
Sreekanth Reddy

Recent Posts

ITR Belated vs Revised vs ITR-U – Which One Should You Choose?

Filing your Income Tax Return (ITR) is not just about meeting deadlines—it’s about choosing the…

April 29, 2026

Best Pension Schemes in India (2026) – EPS, NPS, APY Explained

Retirement planning in India is often misunderstood. Many people think any long-term savings or investment…

April 24, 2026

Property Valuation Guide: How Your Home Is Really Valued

You’ve probably seen the same property quoted at different prices. One person says ₹60 lakh,…

April 21, 2026

Moratorium Rule in Insurance – When Can Insurers NOT Reject Your Claim?

Buying insurance is easy. Getting your claim settled—that’s where the real test begins. For any…

April 15, 2026

Immovable Property Gifts Above ₹45 Lakh Now Under SFT: What Changes from 1 April 2026?

Gifting immovable property—like land, plots, or houses—is super common in India. Families often do it…

April 11, 2026

The ETERNAL Financial Planning Framework: A Practical Approach to Building Long-Term Wealth

Most people believe that investing alone is enough to create wealth. But in reality, many…

April 9, 2026

This website uses cookies.