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

  • Dear Sreekanth,

    I have just filed ITR online (on incmetaxindiaefiling.gov.in) and got it verified as well. Its showing 39K as taxes payable. how can i get ITR with zero amount payable. i can pay through link in the website, but what is the next step?
    Please help

    • Dear Gagan ..Did you pay the tax dues and then uploaded your ITR? This Rs 39k is for which Assessment year?

      • Dear Sreekanth,

        I have uploaded an ITR and e-verified it with out paying tax dues. 39K is for FY15-16 (AY 16-17). last date is 5th Aug, 16. please revert with the solution.

  • Hi Sreekanth,

    I was filling the EFile ITR online(assessment yr 2016-17) in the income tax website and came to know total tax payable by me is Rs 2500. So please let me know should i submit the ITR and then pay the tax or first pay the remaining tax and then submit the IT return

    • Dear subrat,
      You have to first pay (e-pay tax link) the tax dues, provide the 'taxes paid information' in your ITR and then e-file your ITR by uploading the xml file.

  • Dear sir,
    I have got outstanding demand notice from income tax department of Rs.38,080 for assessment year 2012-13 on August 2015,but not detail information was provided regarding how demand was raised. I disagreed for the demand. I also tried to contact AO but can't succeed. I was transferred from my previous place so not possible to go income tax department to clear the false demand. What should I do to clear it???

    • Dear Srikant,
      Suggest you to consult a CA and you can request your CA (representative) to make personal visit to IT dept and contact AO to sort out this issue.
      Kindly do not postpone it.

  • Hi,

    I received demand letter under section 1431a for AY 2015-16 with outstanding tax 630 Rs. I have replied the demand by accepting it. But I have not paid it yet. Do I have to pay this through challan 280 under regular tax assessment. If yes what would be the next procedure, I mean do I have to mention CIN anywhere. Do I have to file revised ITR for AY 2015-16 or nothing has to been done once payment has been done.

    Also I received this on 18-09-2015. Is there any time limit to pay this tax? Is there any interest applicable for this period on the demand amount, if yes how to calculate it?

    • Dear Mily,
      It is better you pay the tax dues as early as possible.
      Yes, you can to pay it under 'regular assessment' category. There is no need to file revised returns (as you have already agreed to the demand).

  • Hi Sreekanth,

    I have disagree the demand but now to me it seems to be fine. Can I pay the demand now, will it be reflected in the demand status.

    Regards
    Raj

    • Dear Raj,
      Tricky question. I am not very sure about this. Kindly consult a CA.
      (But I believe you can pay the dues if you think the IT Dept calculations are correct)

  • Hi, I have got a demand (Interest Payable) for Rs.190/- for 2012-13. I agree with the demand and I want to pay it now. Should I pay interest for the period from 2012-13 to 2015-16 ? If so, how much is the interest amount that I should pay now ? Please clarify

    • Dear VENKATARAJAMANI,
      If the demand is for interest dues till this FY, you can just pay the outstanding amount and clear it off.

  • Hi Sreekanth,

    I have a OTD of Rs 21k reflecting in the website for AY 2009-10.
    The demand was raised in 2011.

    I haven't received any intimation, should I go ahead and pay the tax with whatever information I have.
    I tried requesting for intimation but its giving some errors.

    regards,
    Manju

  • Hi Sreekanth,

    Thanks for the step by step explanation. I received the notice from Income Tax department of India for the return submitted by me for previous financial year (FY14-15). I PARTIALLY agree with the income tax demand and will transfer the agreed amount using E-Pay tax but how can I provide explanation why I agree partially ?

    Regards,
    RD

    • Dear RD,
      I am not sure if there is a provision for 'partial dis-agree' of tax demand in IT filing website. Kindly consult a Chartered Accountant.

        • Dear RD..So there is a provision to provide 'comments' for disagreeing (partially) the ITD's income tax computation?

          • Yes Shreekanth. There are checkboxes while selecting the partially disagree option. By checking checkbox "Demand Paid", user can mention the challan details (paid using e-pay tax as described by you) and by checking checkbox ("Others"),user can mention the comments.

  • Dear Shri Sreekanth Reddy,

    Thanks for the step-by-step guide.
    I have paid a tax of Rs. 630 (Tax Rs. 610 + int Rs. 20) online, in accordance with the intimation u/s 143(1) for AY 2015-16, and the Tax Credit is also visible in Form 26AS.
    Since there is no provision to put the IT 143(1) letter reference number in the challan, I am not sure whether the tax paid by me will be automatically linked by IT dept to the said intimation u/s 143(1).
    Do I need to send a postal reply to IT dept informing them the details of the tax paid?
    Your advise will be highly appreciated.

    • Dear Sampada..You would have selected the appropriate Assessment Year right, so based on that the ITD can match your tax dues. There is no need to send any mail (post) regarding this.

  • I have made the payment of 9220INR in Advance tax while e-filing my return on 26th Aug 2015. Now I got a letter that it is still outstanding.
    I even chaeck and marked the demand is not correct and filled in Challan and all details.
    It is not updated in Form 26AS aw well.
    What should do?

    • Dear Abhipsa..Was Rs 9,220 a tax due amount or a part of advance tax payment? Without looking into the documents, it is tough to advice on this matter. Kindly take help of a Chartered Accountant.

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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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