Agree with outstading demand

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My client received demand notice online US 143 (1). I checked demand & demand was genuine. Client deposited Pending Demand. When i loged in on client id on income tax & give responce i clicked  by mistake on  Agree With Demand instead of Disagree with demand. Now what should i do?

Replies (4)

Oops... you have conducted a silly mistake. But even if you will click on disagree with demand, you need to choose reason of disagrement with demand. What you have choosen there..??

Dear sir,

The matter is very simple, main thing is, you have to give tax paid proof to income tax department about, outstanding demand rasied by them. you said above, your clint deposited the pending demand. this means that tax demand is correct.

according to me you don't have to do any further action. if you will get the further notice and demand outstanding in your login id then you have to give a proof that is (challan number,amount,paid date,bank,year)

you are required to rectify it by login your clint id and go to my account and select rectification requist and  putting your demand cpc number and attaching your demand proof.

this procedure is sufficient for this case.

 

Regards.....

 

Income Tax Return filing season for certain class of assessees including individuals not falling under tax audit provisions has just been over and by now the Income Tax Department (the Department) has already started processing of these returns. In fact, return filing and processing thereof are an ongoing process for different class of assessees.

At times, income tax payers get intimation of demand from the Department u/s 143(1).

Following is the text of section 143(1) of the Income Tax Act, 1961;

“Where a return has been made u/s 139, or in response to a notice under sub-section (1) of section 142, such return shall be processed in the following manner, namely:—

(a)  the total income or loss shall be computed after making the following adjustments, namely:—

(i)  any arithmetical error in the return; or

(ii)  an incorrect claim, if such incorrect claim is apparent from any information in the return;

(b)  the tax and interest, if any, shall be computed on the basis of the total income computed under clause (a);

(c)  the sum payable by, or the amount of refund due to, the assessee shall be determined after adjustment of the tax and interest, if any, computed under clause (b) by any tax deducted at source, any tax collected at source, any advance tax paid, any relief allowable under an agreement u/s 90 or section 90A, or any relief allowable u/s 91, any rebate allowable under Part A of Chapter VIII, any tax paid on self-assessment and any amount paid otherwise by way of tax or interest;

(d)  an intimation shall be prepared or generated and sent to the assessee specifying the sum determined to be payable by, or the amount of refund due to, the assessee under clause (c); and

(e)  the amount of refund due to the assessee in pursuance of the determination under clause (c) shall be granted to the assessee:

Provided that an intimation shall also be sent to the assessee in a case where the loss declared in the return by the assessee is adjusted but no tax or interest is payable by, or no refund is due to, him:

Provided further that no intimation under this sub-section shall be sent after the expiry of one year from the end of the financial year in which the return is made.

Explanation — For the purposes of this sub-section,—

(a)  “an incorrect claim apparent from any information in the return” shall mean a claim, on the basis of an entry, in the return,—

 (i)  of an item, which is inconsistent with another entry of the same or some other item in such return;

(ii)  in respect of which the information required to be furnished under this Act to substantiate such entry has not been so furnished; or

(iii)  in respect of a deduction, where such deduction exceeds specified statutory limit which may have been expressed as monetary amount or percentage or ratio or fraction;

(b)  the acknowledgement of the return shall be deemed to be the intimation in a case where no sum is payable by, or refundable to, the assessee under clause (c), and where no adjustment has been made under clause (a).”

Most of such cases are generated due to discrepancy in income tax return and the documents on the basis of which such return is prepared including TDS certificates, Form 16/Form 16A or Form 26AS etc.

@ Deepakji..... Agreed by Sangameswaran.N ji........


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