Response to outstanding tax demand

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CA Raj Doshi (Querist)
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16 February 2017 Received demand for 1831 Rs. of earlier year I have paid Rs.1810 with return of income. how should I reply online under the " Response to outstanding tax demand " and what will be itd response to my case.

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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16 February 2017 If you have already paid tax pertains to demand, you can respond the same in your tax login.in Dashboard my pending action or in compliance.

CA Raj Doshi

CA Raj Doshi (Querist)
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16 February 2017 I Have paid partial tax. that's y I don't know how to respond online. Further just realised that bank has paid the amount as AY 0809 instead of AY 0708

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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21 July 2025 Thanks for the info! Here’s how you can handle this online response for the outstanding demand:

Situation:
Demand: Rs. 1831 for AY 07-08

You paid Rs. 1810 for AY 08-09 (which is a different year)

So, effectively, demand for 07-08 is still unpaid

How to respond online under “Response to Outstanding Tax Demand”:
Login to your Income Tax e-filing portal.

Go to Dashboard > Compliance > Response to Outstanding Demand.

Select the demand for AY 07-08 which shows Rs. 1831.

In the response options, select:

Demand is partially correct (because you paid Rs. 1810 but for the wrong AY, so the demand amount is still outstanding)

Provide explanation in the remarks section like:

"Partial payment of Rs. 1810 was made for AY 08-09 due to bank error. The outstanding demand of Rs. 1831 for AY 07-08 is still unpaid and will be paid soon."

Submit the response.

What Income Tax Department will do:
They will note your response and the partial payment details.

They may adjust any future payments or send a revised demand.

You should ideally pay the outstanding amount for AY 07-08 soon to avoid further interest or penalty.

Additional advice:

You can also file a rectification request or write to the Assessing Officer explaining the payment misapplication by the bank.

Keep proof of your payments ready for reference.

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