Demand raised by dept

Check 26AS. Check whether tax paid has been adjusted with the tax liability in that AY. Sometimes TDS paid do not get reflected in your IT returns which is why demand is raised.

If 26AS shows TDS paid, and NIL tax liability payable, then you file rectification u/s 154. You can do so online also from their website incometaxefiling.gov.in

it may be coz of some disallowances made by AO......So, you can do either of following:

1) Write a reply to AO seeking the reason for demand..

2)Personally attend his office either urself or through your representative.

Is this for a pvt ltd co or for an individual assessee ?

Have you received assessment u/s 143(1) ?

If the demand has been raised, either you pay if the tax liability actually exists or ascertain whether they are mistaken.

individual assessee.

received an intimation u/s 245.

No tax liability exists.

now?

It means IT dept adjusted your refund with your tax liability. The intimation will say which AY the tax liability belongs to.  

Check IT returns of AY 2008-09 and its 26AS. TDS or some tax must have been paid. See what will be the tax liability if TDS or tax paid is not considered in intimation u/s 245.

For example:\

Tax liability - 230,000

Tax paid - 200,000

TDS paid - 30,000

If you remove TDS, then tax liability will show as 30,000.

So check if all TDS and tax has been considered in the IT return by them.

ITR of ay 2008-09 and 26AS is fine as per records. there is no such calculation or comparison is shown in the intimation. it shows the demand only.

Intimation u/s 245 are issued to inform the taxpayers for the adjustment of refund pertaining to one year with the demand outstading for another year.

if there is no tax payable according to you and if there were no adjustments made by the Assessing Officer during assessment, if happened, then the common reason for such demand is non-granting credit for TDS by the tax office. In such circumstances, please follow the following steps:

1. Please check if any intimation is sent by the tax office for the return processed. If yes, please verify the TDS cerdit given with the TDS claimed by you in the return.

2. Please also check the form AS 26 and verify the TDS credit.

3. If TDS credit is not given either partly or fully, please write a letter to the assessing officer with the copies of the TDS certificates.

Please let me know in case you require any further clarification.