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

  • Hi Sreekanth

    Does form 26AS form gets updated immediately after paying the amount received in
    intimation 143(1). I have paid the outstanding demand online and i have received challan but online the status is still not updatd

  • Hi Sreekanth…

    Thank you for the informative article.I have received an INTIMATION U/S 143(1) OF THE INCOME TAX ACT, 1961 for an net payable amount of Rs.4/. Am I required to pay the amount? If not required to pay,can you include in your article about the steps to be taken if the demand is for meager amounts as in my case?

    • Dear Sir.. Kindly ignore the notice.
      If the tax demand is less than Rs 100, it can be ignored. The same will be adjusted in the future Assessment years by the IT dept.

  • Sir, I have received outstanding demand of 470 to be paid but when checked in portal it is showing no records found in response to outstanding demand.

    Can this be ignored.. Plzz comment

    • Hello Suresh, Any update on how this got resolved. I have a demand for Rs.275 but no records found under "Response to Outstanding Demand". Kindly let me know.

      • Dear SV,
        If there are no pending dues, IT dept is mostly ok if you ignore this low amount. Anyways, kindly submit a grievance to them and inquire..

        • Hi, Thanks for your response. I did raise a grievance but they closed it on e-Nivaran saying I should contact jurisdictional assessing officer. Have written to them via email. But, no response. I think an alternative approach would be to just go ahead and file challan 280 - regular assessment (400) and pay the dues against the relevant AY. So, on record, there is that amount of tax paid.

    • Dear Suresh,
      As the tax demand is more than Rs 100, suggest you to inquire it with the IT dept and clear it (if any).
      You can submit your grievance to the IT dep through e-Nivaran portal..

  • Thanks for sharing the knowledge with us... i can also do this right now without any problem ! Thanks

  • Thank you very much for your information. Just viewed this blog and step by step, i have completed my payment. Hope it will be visible in income tax website in next 2-4 weeks.
    Cheers. God bless.

    • You are welcome dear rajeev .. Keep visiting ReLakhs.com for all your personal finance related matters..cheers!

  • Sir I have already paid the tax amount (claimed by IT under section 143) at the time of filing my return as self assessment tax.
    Please advise how to respond /steps to be followed to update my return if any.

    thanks

    • Dear Amita,
      Did you e-verify your Income Tax Return?
      Kindly check the status of your ITR by visiting e-Filing portal..

  • sir i hv paid the outstanding demand which was due to interest payable like shown in your article. but in net banking payment i hv entered the amount in tax not in interest and paid the amount.will there be any problem?

  • Hi Sreekanth...

    I have received a an INTIMATION U/S 143(1) OF THE INCOME TAX ACT, 1961 for an net payable amount of Rs.10/-. In outstanding tax demand its showing no records found, how can i pay it???

    • Dear umesh,
      Any tax demand of up to Rs 100 can be ignored. The same may be adjusted in your IT returns.

  • Hii Sreekanth!!!!!!!
    I have received hard copy of outstanding tax demand notice ..U/S 143(1).Want to pay the tax online but no link for the same provided in the out standing tax demand link under e filing after logging in to the portal.It shows no records found..What to do???

    • Dear Ansuman,
      For which Assessment year is this demand?
      Kindly check if there is any details under 'Compliance section'.
      You may also submit your grievance to the IT dept through e-Nivaran portal and you will get guidance from them..

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Sreekanth Reddy

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