How To Response To Outstanding Tax Demand Online

Do you know what is response to outstanding tax demand online means? If you have not faced any issue after filing your income tax return online then you might have not heard about this term. But as you are reading this article, I am sure that you are looking for how to response to outstanding tax demand online. Let me explain you what is this and how you can get rid of this problem from my personal experience. Frankly speaking this incident happened to my father who is retired now.

What is outstanding tax demand?

As the term is self- explanatory, the outstanding tax demand is nothing but the miss match between the income tax paid by you and the actual amount of tax you should pay. Sometimes you might have paid the income tax but forget the update the same while filing your income tax return online.

In my case, my father has paid the calculated income tax in bank by filling the due challan. After that he took help from a income tax broker who generally do this type of work for everyone in his office. But somehow he forget to update the same while filing for income tax return online.

Now next year when my father ask me to file his ITR online, I have discovered an outstanding tax demand on his login with income tax India official website. It is clearly saying that, there is a miss match and now need to take necessary action to update income tax department about the actual fact.

How to response to outstanding tax demand online

As soon as you log in to your income tax India website with your PAN number, you will find a screen where the details are appearing. You have to click on the option response. Then you will fine a screen like below.

how to response outstanding tax demand

Demand is Correct: Now, if you have really missed the due income tax payment and the outstanding tax demand is genuine then you should pay the remaining income tax amount first and response to outstanding tax demand by choosing demand is correct.

Demand is Partially Correct:  I don’y have much idea in which exact condition this option is useful.

Disagree with Demand: Now in my fathers case, this is the option we opted for as he has paid the income tax with in the time frame only. Then click on submit button and you will find a screen like below.

response outstanding tax demand online

In this screen you have to choose the correct reason as you are disagreeing the income tax departments investigation. If you have paid the amount then you can choose demand is paid and provide the challan number to complete the request. In case you have other valid reasons then choose accordingly and submit your response with necessary proof attached.

Please share your experience if any while responding to outstanding tax demand online here by writing a simple comment below. For more details visit the page here.

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