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 Amount, BSR Code, Serial 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

    Need your urgent help and advise!
    The query is regarding AY 2008-09.

    I worked in 2 companies during the year and filed a consolidated IT returns. Balance of tax was paid thru self assessment challan.

    I received a notice by email in 2013 from CPC (they claimed they had intimated in 2010 but i never received! ) and demand was very high with interests and penalty.

    The IT department has not considered both the Form 16 and only credited the self assessment challan payment.

    I filed a manual response with the salary circle and ward i was told by an CA and enclosed all the workings and copies of Form 16 and assessment challan and disputed the demand and asked for rectification.

    I did not get any response and in 2015 Feb again there is an reminder to pay the demand.

    I noticed that one of the employer had wrongly quoted my PAN No and the other employer Form 16 are perfectly alright. Assuming one Form 16 has wrong PAN no, IT should have credited the 2nd Form 16 which has a higher TDS value than the wrong one and the demand should have been very less compared to what they have issued.

    I have asked my previous employer to rectify the IT returns they have filed and issue revised Form 16. They have refused to act and are not even responding.

    Need your advise on how to handle this situation. Since there was no 26AS at that time, i think even the IT would not have seen the issue reg the wrong PAN no. Can the AO take a decision to rectify the record and close the demand without revised Form 16?

    Looking for your advise..

    Thanks

    • Dear Srinath,
      I understand your issue.
      But, I advise you to consult a good Chartered Accountant. I do not want to misguide you.
      Your previous employer has to issue a revised Form-16 (if mistake is on their part). I am sure AO will consider this as the main point before deciding on the final tax liability.
      What is your CA advising to do now?

      • Thanks sir for your quick response. Yes i have consulted a CA as it is better to hire professional services.

        He has advised to submit another response and also made a online submission against the demand marking as disagree with the demand.

        Is there a provision in the law that can force my previous employer to issue revised F16.. Please revert

        Many thanks for your advise.

        • Dear Srinath,
          You may consider doing this - Send a registered post requesting your previous employer to issue a revised form 16 (quoting correct PAN no). State your issue clearly in the letter. Preserve a copy of this letter along with the registered post receipt.
          You may also report this issue to Income Tax ombudsman.
          Suggested read : simpletaxindia .net article

  • Well explained. This is what the clarification I was looking for which I got from you blog. There is also one more step to be followed as I understand. After e-paying the demand amount, one has to act on "Response to Outstanding Demand" by accepting the demand. I believe this procedure will close the case online. No more follow up to be done. Hope my understanding is correct.

    • Dear Mr Krishnan,
      Thank you for your appreciation.
      At the time of publishing this post, "Response to Demand" option was not part of the process. I agree with you.

  • I got outstanding demand notice. I already paid the amount in July 2014. but I don't have the challan as I was not forwarded to the next page after paying the tax, probably because of network problem. I just have the transaction reference number agaist which the amount was debited from my account.
    If i submit my response online then it demands CIN which I dont have.
    Please suggest what should I do now?

    Thanks
    Mohit

    • Dear Mohit,
      Suggest you to login to your internet banking portal and check for chalan statements. Many banks provide access to previous years chalan (tax related) payments.

      • Hi Sreekanth,

        I checked 26AS and could see that tax is credit to their account and also got the CIN and BSR code from there. I have submitted my rectification request few days back. Would I get any response on that?
        I can see that the outstanding tax demand page was last updated on 28-March but there is no information to me as an FYI...
        How do I know the my case has been reprocessed and corrected?

        Thanks for help
        Mohit

  • I RECEIVED A DEMAND NOTICE UNDER SECTION 143(1) AND I MADE THE PAYMENT THROUGH NET BANKING ,,, I WANT TO KNOW THAT IS ANY LETTER SHOULD BE SENT TO THE OFFICE OF INCOME TAX REGARDING MY PAYMENT INFORMATION
    THANKS

    • Dear Mukesh,
      It is not mandatory to send any letter to IT department. But, preserve your Bank challan receipt (tax paid receipt) and a copy of your Form 26AS which reflects your outstanding tax payment transaction.

  • Thanks a lot for the information.
    I have also got demand tax request, but i didn't find the link to pay tax under the MyAccount link in incometaxindiaefiling. gov.in

    Could you please suggest which link i need to select to pay tax online under MyAccount section?

    • Dear Sreedhar,
      Suggest you to check the 'demand status' under 'My account' menu option. Also, check if there is any message under 'e-file' , 'response to outstanding tax demand' menu option.
      If you have dues, you can pay by clicking 'E-pay tax' under 'Quick Link' options (left side of the window).

  • Hi Sreekanth,

    I got Outstanding Tax Notices for two FYs, subsequently I have intimated my response to concerned AOs (with a copy to CPC). In one of the cases there should be a refund as there was a 26AS mismatch. Now the status under the efiling website is showing no records.

    My questions are, 1. how do I get the update regarding the rectifications? 2. Whether the removal of Outstanding Tax Demand itself is sufficient to proof that my application is granted / accepted by AOs/CPC. Also, 3. how I can see the status of refund after rectification from IT Dept.

  • There is a tax demand for AY 2014 - 15. I have accepted the demand online on the website. It says demand will be adjusted against any future refunds.

    Do i still need to pay the demand? or do nothing as they say demand will be adjusted against any future refund? Please clarify as I don't want to delay this any further.

      • Two demands showing:
        1. AY 2008 -09: Rs. 12,222 uploaded in 03/03/2010
        2. AY 2014-15: Rs. 1710 uploaded 2 days back

        I have accepted both the demands - second one is penalty due to delay in paying self assessment tax. First one, i don't know the reason. I don't have any demand notice. Plus 26AS is also not available on TRACES for this period. But since the amount is small, i have accepted it.

        Now, do i need to pay or they will automatically be adjusted against any future refunds? The website says "once you accept the demand, it will be adjusted against future refunds, if any". But i don't want a situation sometime in future when they say you should have actually paid it and since you have not paid it, now pay it with all late payment interest and penalty.

        Please advise.

        Thanks,

        • Dear Shashi,
          Though they say that the outstanding demand will be adjusted against future refunds, i believe they may levy interest penalty on the outstanding amounts. Also, there may be a case/scenario where no refunds are due in future right?

          Regarding 2008-2009, i guess you might have filed the IT returns offline. Suggest you to check in IT website by logging in regarding the Outstanding dues. Visit 'My Account' menu and check the status under ' Regund/Demand status.'

          Suggest you to pay the dues immediately. You may also consult a Chartered Accountant.

  • Thanks for nice post!
    Would you please let us know that if no itr or any rectification required after demand of outstanding amount is paid, does IT department send a receipt of that.
    Normally we need to save IT returns of last 3 years , does form 26 is alone sufficient

  • Dear Sreekanth,
    I am very happy to find 'relakhs.com' . It's very useful for people like me.
    Thanks for your good guidance on income tax issues.

  • Hi Shreekanth,

    This is really helpful page. Thanks for making it so informative it helped me very clearly in filing my Tax Outstanding Demand. Thanks!!

    Regards
    Gaurav

    • Dear Gaurav,
      Thank you and nice to know that you could find the required information here. Keep visiting!

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Published by
Sreekanth Reddy
Tags: Income Tax Deductions List FY 2019-20Income Tax Returns FilingOutstanding Income tax demandTax demand noticeTax demand online payment
January 14, 2024

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