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 ji,

    I have received a hard copy for outstanding tax demand. I had already paid the amount online two months back. I also have a challan receipt and same is reflected in my form 26 AS too. But under outstanding tax demand, it still shows pending amount of 9900. Is there a problem? Do I need to send the challan had copy to CPC Bengaluru or it should be fine?

    Thanks,
    Vyankatesh

      • You are super awesome Sreekanth ji. I have submitted the same. Honestly speaking, I never thought they would use such a pure Hindi word for resolution. Glad you pointed out. Not sure though if they would respond to these online queries.

        Sending hard copy is not needed, right?

        Thanks :)

        • Dear Vyankatesh,
          I believe that there is no need to submit any hard-copy.
          Suggest you to also check if there is any action to be taken from your side under 'Compliance' section in your e-Filing account.

          • Hi Sreekanth ji,

            I have received a hard copy for outstanding tax demand intimation 143(1). I had already paid the amount online in July 2019. I also have a challan receipt. But under outstanding tax demand, it still shows pending amount of 14140.
            I have already payed 14000 while filing my ITR. on top of it i have paid 140 and Partially agreed to the demand. But i can still see Outstanding amount in my tab.
            Same thing happend last year as well and i disagreed to the amount and showed them the challan number. That entry is still showing up in my outstanding amount.

            Can you please help me with this? What actions must be taken from my end?

            Thanks,
            Sanya

  • hi sreekanth
    ur information is very useful.
    i m a senior citizen and reced notice under sec 143(1) for demand tax. surprisingly the demand arose when cpc treated amount under section 80 D as 25000 instead of rs 30000 as can be claimed by a senior citizen and also as claimed by me.
    what is the recourse to mistakes of CPC bangalore

    • Dear suryanarayana ji,
      Kindly cross-check your Tax Return again.
      If you believe that your calculations are correct, you can disagree to the demand notice.
      You may kindly go through below articles, can be useful ;
      Article - 1
      Article - 2

  • Hi,

    I have received the intimation u/s 143(1) for ITR AY 2017-18 in which the TDS collected from employer is not considered even though there are TDS entries in Form 26AS and demand has been raised for me. Also i made a mistake in ITR as i mentioned the TDS amount in the Advance Tax section instead of mentioning it in TDS section which had lead to Tax credit mismatch. Please help me with the response to the outstanding tax demand.

    Thanks,
    Murali R

  • Thanks for information

    I have paid online E-TAX on income tax portal , after that any other actions required ?

  • Thanks, your website and all over guidance is highly appreciable. Thank you very much. Keep it up

    • Thank you for your kind words!
      Keep visiting ReLakhs and kindly share the articles with your friends!

  • Hello sir,

    I need some help regarding the demand notice which I had recieved few days back for AY2012-13. I followed the instructions given in the notice and initiated the payment of tax demanded. I paid the tax on my eBanking portal and challan was generated. I saved the Challan but then before eBanking platform redirects me back to IT portal, my connection broke and now I’m not sure what to do. I have already submitted the demand with “Demand is correct” selection on the portal after payment of tax. Now the question is what to do with the Challan that I received. I still see the same outstanding demand in my account on IT portal. Please advise.

    Thanks,
    Bhavin

    • Dear Bhavin,
      Kindly check your Form 26AS if the Tax has been successfully paid or not.
      If it is shown in Form 26AS, kindly do not worry, the outstanding tax status may be updated soon.

  • Hi SreeKanth,

    I have filed return for AY15-16 and AY16-17 in December 2016. And e-verified the returns on 13th March 2017. I noticed Tax Payable as 25000 in the ITV - acknowledgement and paid it on 14th March 2017 before ITV is processed(intimation for demand tax not received). Kindly let me know what would be further process. Can I use the challan in future if I receive the Demand Tax intimation?

    Regards,
    Suneera.

    • Dear Suneera,
      You mean to say that you have filed the ITR without paying the tax dues?

      • Hi Sreekanth,

        Yes I have filled the ITR without paying the tax dues.. but paid it after the returns is filed. I have challan details also... but not sure where to update these details.. as proof that I have paid the tax.

        Regards,
        Suneera Shaik.

        • Dear Suneera,
          You may get a notice from the Tax dept.
          Suggest you to submit your grievance at e-Nivaran portal, do provide all the details about your case. The IT dept will come back to you with necessary corrective measures.
          You may have to Rectify your ITR. You need to provide the tax paid details and file updated ITR.

  • Hello,

    Very useful information. I have one query.

    I have received outstanding demand for AY 2004-2005 of Rs 3414 but it is no where written that whether this amount is inclusive of interest or not? I even checked on the efiling portal, this information (about interest) is not available there also..
    Currently, I am out of country and I dont have my AY2004-2005 income tax return copy with me.

    Any idea?

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Sreekanth Reddy

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