How to Pay or Reject Outstanding Income Tax Demand Under Section 143(1)

How to Pay or Reject Outstanding Income Tax Demand Under Section 143(1)

January 10, 2024 / Income Tax / By

How to Pay or Reject Outstanding Income Tax Demand Under Section 143(1): The different strides of Income Tax documenting are – Filing Income Tax Returns, Mailing ITR V structure to Centralized Processing Cell (CPC-Bangalore) and Receiving affirmation for ITR V.

After getting the ITR V affirmation, now and again, you may get an email from Income Tax Department within a year of filing the Tax Returns. This email may contain ‘Suggestion Under Section 143(1).’

On the off chance that you pay less tax than what you should while documenting income tax return at that point while surveying the Income Tax Return, you may be approached to pay the outstanding Demand. Income Tax Department sends the suggestion under Section 143(1) requesting unprecedented injunction alongside the estimations concerning why the Income charge division thinks you need to settle more Tax. You can go through the estimates and make good on the special assessment if you concur, or you can dismiss the Outstanding interest. This article speaks in insight concerning paying or rejecting the Outstanding Income Tax that one gets under area 143(1).

What Do You Mean by Assessment of Income Tax Return?

Income tax assessment is the way toward gathering and surveying the data documented by assesses in their annual income tax returns. Toward the finish of each financial year, all people and entities needed to record an income tax return without help from anyone else processing the measure of pay procured and paid the tax due. Consequently, an income tax assessment would happen, resulting in the documenting of an income tax return. Under the Income-tax law, there are four primary types of assessments as given below here:

  • Assessment under section 143(1), that is, Summary assessment without calling the assessee.
  • Assessment under section 143(3), that is, Scrutiny assessment.
  • Assessment under section 144 is Best Judgement assessment.
  • Assessment under section 147 that is, Income escaping assessment.

Whose Duty Is To Process The Electronically Filed Returns?

Electronically documented Income tax returns are processed by Central Processing Center or CPC at Bengaluru. The Infosys group set up an IT-CPC, an incorporated processing place for all IT-related processes. Every recorded return was coordinated, approved, filtered, digitized, handled, and printed. The CPC was established in February 2009, and Infosys Technologies Ltd was designated for five years as the technology accomplice and was paid Rs. 250 crores for the five-year contract. In Dec 2014, the Centralized Processing Center (CPC) of the Income Tax (I-T) Department at Bangalore to Infosys was stretched out by two years up to September 2017.

Assessing officials surveyed before all the Income expense forms. Presently just a few cases allude to Assessing officials.

What is Intimation Present Under Section 143(1) of the Income-tax law?

The Intimation would show the Income Tax return as recorded by you and the calculation as done by the Income Tax Department. Income Tax Department, for the most part, sends Intimation Under Section 143(1) for two fundamental reasons:

  1. To illuminate you about any outstanding Income Tax interest or Interest payable by you (or)
  2. To advise you about any tax or interest refundable to you.

Assuming it is an assessment discount suggestion, you don’t need to do anything. If it is “Tax Demand” (Tax payable by you) and you are pleased with the calculation done by the Income Tax Department, at that point, you should pay the measure of Tax payable according to Section 143(1).

The refundable sum is zero, and the interest payable sum is Rs 120. (The Intimation u/s 143(1) is sent for charge/interest of Rs 100 or more as it were). For the most part, you are mentioned to pay the whole Tax interest within 30 days of receipt of the Intimation.

Three Sorts Of Notification Are Sent Under Section 143 (1)

  1. Intimation where the notification is to be considered a conclusive assessment of your returns when the return recorded by you matches with his calculation. Nothing is to be done on a piece of the taxpaying citizen. Keep it with your Income Tax papers.
  2. Handling or processing under section 143 (1) would make you qualified for a discount. If on the off chance that you acquire a Refund, sit tight for the exchange into your record.
  3. Notice of interest where the official’s calculation shows a deficiency in your Income Tax payment for the said economic year. If there is a tax demand by chance, then this Intimation transforms into Notice of Demand under section 156. The notification says, “if there should be an occurrence of Demand, this Intimation might be treated as Notice of interest u/s 156 of the Income Tax Act, 1956. Likewise, you are mentioned to pay the whole Demand within 30 days of receipt of this intimation”.

Evaluation under section 143(1) can be made inside a time of one year from the finish of the economic year in which the return of Income is recorded.

Till What Outstanding Tax Demand Can You Ignore?

One does not require to pay the outstanding Demand if the Outstanding tax demand is less than Rs. 100 or refund is lesser than Rs. 100. Just n case of a refund, one will not get the refund if the refund amount is less than Rs. 100. It will be adjusted along with the future ITRs.

How To Respond To Notice Collected Under Section 143(1)?

Discover the nature of Income Tax Demand: First and foremost, you need to find out the justification for raising Demand. You will get the data from Intimation got u/s 143(1) of the Income charge Act.

If you have outstanding tax demand toward the finish of the notification by chance that you would see the Net Amount Payable.

  1. Comprehend the thought process of serving the notification.
  2. Check the given information of Notice, i.e., your name, address, PAN, and so forth.
  3. Check the authenticity of the notification just as the span inside which you need to reply
  4. Check the evaluations. It would be clarified in two sections yours and how Income Tax Calculated it.

If you have not gotten intimation u/s 143(1), you can visit the Income Tax E-Filing Website and solicitation for resending of Intimation u/s 143(1)/u/s 154.

How Do You Know Why Such Demand Doesn’t Have The Notice for The Same?

The income tax e-documenting entry has an alternative to send a solicitation to the IT public to send the interest notice by email to you for the years in which the return was electronically recorded. For the years when you didn’t document IT return electronically, you need to contact and request the interest notice from your jurisdictional surveying official of the time of Demand, with whom you had recorded your IT return. They will give you the duplicate of Notice, by which you can pick the course expected to clear the Demand.

  1. Sign in to income tax e-filling portal Income charge e-filing site.
  2. On the head Navigation Blue Bar, go to My Account Section.
  3. From on My Account Section, drop-down menu, choose Request for Intimation u/s 143(1)/154
  4. Select the proper Assessment Year starting from the drop. (For the monetary year 2009-10, the Assessment Year will be 2010-11)
  5. Presently Select the Category Intimation u/s 143(1). The other class is Rectification u/s 154.
  6. Sub-category will consequently become Resend by email. It is shipped off your email id on pay e-documenting entry. You can refresh your email id through the Profile settings area on the top blue route bar.
  7. Presently enter the captcha code and present the request.
  8. You will get an affirmation mail from CPC that very day and the Intimation within 5-6 days of your presenting the request in your enrolled email id.
  9. If you don’t get the Intimation within 5-6 days, you can follow the situation with Demand by signing on to your e-recording account and tapping on the My Request List Tab on the top blue route bar of your record. A screen will appear. Select the sort of ask for and Submit. The status of your request will show.

How To Check Outstanding Demand Information On The Income Tax Website?

You can check Outstanding Demand and information regarding it by Logging in to the Income-tax site and Click on My Account and afterward Outstanding Tax Demand as clarified in Notice for Adjusting Refund Against Outstanding Tax Demand, Section 245. Details shown are: Assessment Year, Section Code, Demand Notification Number, Date on which request is raised, Outstanding Demand sum

How To Reply To Income Tax Demand Notice?

By a slim chance that you have gotten an Income Tax Demand, you have two options, one to acknowledge and Pay the interest, another decision is to dismiss the appeal. It depends on the Income Tax instructional exercise Response to Outstanding Tax Demand (pdf design)

Step 1: Log in to your e-recording account on www.incometaxindiaefiling.gov.in with client ID and password.

Step 2: Click on ‘E-file’ and go to ‘Respond to Outstanding Tax Demand’.

You will see the accompanying information given:

  • Assessment year
  • Section code
  • Demand notification number
  • The date on which Demand is raised
  • Outstanding demand amount
  • Uploaded by
  • Rectification rights
  • Response – submit and view

Step 3: Click on ‘Submit’ for the applicable evaluation year. Pick one of the alternatives referenced underneath

  • Disagree with Demand
  • Demand is partially right
  • Demand is right

What Should You Do If You Agree With The Demand And Want To Pay The Outstanding Tax Demand?

On the off chance that you select Demand is proper, a spring up is shown as “If you confirm, “Demand is correct”, you can’t, “Disagree with the demand”. Snap-on Submit if this approves of you.

  • A success message will appear on your screen.
  • If any refund is expected, the outstanding sum alongside interest will be charged against the refund due.
  • In some other case, you should reimburse the Demand right away.

Snap-on E-Pay Tax to pay the taxes on the web. This will transfer you to Tax Information Network (TIN) site.

  • Select Challan 280 for reimbursing your Income Tax Due.
  • Pick proper Assessment Year. Kindly be cautious in filling the Assessment Year.
  • For people making tax payments, select (0021) INCOME-TAX (OTHER THAN COMPANIES) under Tax applicable.
  • Fill in your PAN and Assessment Year accurately.
  • Fill in the location, telephone number and email address.
  • Fill in the Captcha Code and Bank Name
  • Under Type of payment area Select 400: Tax on Regular Assessment. Different alternatives are (100) ADVANCE TAX: For normal development, charge installments or 300 SELF ASSESSMENT TAX if you are paying expenses after the financial year has finished.
  • You will be diverted to the Net banking page. Kindly check the data entered here. You can enter the all-out annual income tax to be paid in the income tax field. You can leave overcharge, interest and penalty blank. You can inspect your Intimation to get the information like Interest Payable, Surcharge.
  • Get the BSR code and challan number.

Who To Inform After Making Payments Of Tax Against A Demand Notice?

On the off chance that the interest notice is from CPC Bangalore, no further correspondence will be required. Demand will naturally be changed with the tax payments made. You can check the situation with a request by signing in to the Income Tax e-recording entryway following not many long stretches of making payment. Go to “Outstanding Tax Demand” and inspect the status. If the IT office gets your installment, you may discover no records.

Suppose the notification of Demand is served upon you by the Jurisdictional Assessing Officer. In that case, you should compose a request to the Assessing Officer to erase the Demand referencing that the details of tax payments made by you and joining and the duplicate of duty payment Challan.

What Should you do After Paying the Outstanding Tax Demand?

You should check the status of your tax payment by viewing Form 26AS and choose the specific Assessment Year. Visit Part C – details of Tax paid. There should be an entry with the information of your Outstanding Income Tax Demand payment.

What To Do If You Feel Demand Is Partially Correct?

Step 1: There will be two fields displayed to enter a right and wrong amount.

  • The correct sum – Enter the erroneous sum. On the off chance that the Amount entered here is equivalent to the demand amount, one pop-up text is shown “Since the sum entered is equivalent to exceptional interest sum, kindly select the choice “Demand is right”.
  • The wrong Amount: The Amount is auto-filled, which is the distinction between the outstanding Amount and the Amount, which is correct.
  • Fill in the reasons concerning why the request is wrong.
  • Because of the explanation chose, one requires to give extra data.

Step 2: Once you enter the sum in the fields, you should pick a justification expressing the office’s computation to be mostly right.

  • Demand has effectively been paid: Provide the Challan Identification Number (CIN). Additionally, notice the BSR code, date of payment, the serial number of challan and Amount. You can likewise add your remarks under ‘comments.’ If CIN isn’t accessible, notice that Demand has been paid by challan and CIN isn’t accessible. Additionally, see the date of installment, sum, and comments (your remarks), assuming any.
  • Demand has effectively been diminished by correction/revision – Provide the date of request, request sum, information of jurisdictional ITO who has rectified. Then, upload correction/bid impact request passed by the ITO.
  • Demand has effectively been decreased by re-appraising order. However, appeal impact must be given by the department – Provide the date of order and the re-appraising order passed by (information of appellate authority, and the reference number of charge).
  • Demand has been documented and stay petition has been recorded, or remain been allowed by, or portion has been conceded by – Provide the date of reporting of the appeal, offer forthcoming with re-appraising authority, e.g., CIT(A) or ITAT, stay appeal documented with information of office. On the off chance that the stay has been granted, you should likewise transfer the stay request’s duplication.
  • Rectification/updated return has been recorded at CPC – furthermore, kindly outfit the accompanying information.
    • Filing type
    • E-filed acknowledgement number
    • Remarks (comments, if any of the taxpayer)
    • Upload challan copy
    • Upload TDS certificate
    • Upload letter requesting rectification copy
    • Upload indemnity bond
  • The correction has been recorded with surveying officials – Mention the date of utilization and comments (remarks, if any of the taxpayer).

What Is The Following Process If You Disagree With The Outstanding Tax Demand?

Assuming you Disagree with the Demand, you should outfit the information of your conflict alongside reasons. The information/reasons are equivalent to the referenced above under ‘demand is somewhat right’.

After presenting a reaction, the achievement screen would be shown with the exchange ID.

One can tap on the View interface under the Response section to see the reaction submitted. The accompanying subtleties are shown: S. No. Exchange ID – A hyper connection, Date of Response, Response Type

One can tap on the Transaction ID to know the details of the reply submitted.

  • Demand position gets refreshed each day.
  • On the off chance that Demand is demonstrated to be uploaded by AO, correction right is with Assessing Officer; if it’s not too much trouble, contact your jurisdictional Assessing Officer for something similar.
  • For the Demand in opposition to which there is No Submit reply option, accessible such Demand is now affirmed by the Assessing Officer. Please contact your Jurisdictional Assessing official.

We sincerely wish that with the help of this post, you have found some informative and valuable data. If you discover anything missing or wrong, please let us know, and we’ll correct the information. You can find more information about Outstanding Tax Demand through their website.

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