Calculation of Demand due to interest u/s 220(2)

Interest under Section 220(2) is triggered if a demand is not paid within 30 days of the Notice of Demand under Section 156. Because your rectification order resulted in a new demand, the interest period should technically be calculated based on the new notice. You should consider filing a detailed rectification application to correct the interest calculation, specifically highlighting payments already made and the correct starting date for the 30-day compliance period.

Thank you for responding.  I would like to seek further clarification from you in this regard :

1. To whom should I find the Rectification Order with? AO or CPC?

2. If I chose AO, further options are Intimation u/s 143(1) or Rectifucation u/s 154? in which case the IT portal says that the order is passed by CPC and hence request may be filed through Rectification order passed by CPC

3. The other options are a) Assessment Order b) Penalty Order c) Any other order. Shall I chose option a)?

Would you please clarify the above query? Thanks in advance.

Thank you for responding.  I would like to seek further clarification from you in this regard :

1. To whom should I find the Rectification Order with? AO or CPC?

2. If I chose AO, further options are Intimation u/s 143(1) or Rectifucation u/s 154? in which case the IT portal says that the order is passed by CPC and hence request may be filed through Rectification order passed by CPC

3. The other options are a) Assessment Order b) Penalty Order c) Any other order. Shall I chose option a)?

Would you please clarify the above query? Thanks in advance.

As my Demand notice No. starts with CPC...., filing rectification to AO is not allowed. For rectification against orders of CPC, the options are a) Return data correction (offline), b) Tax credit mismatch correction and c) Reporcess the return. None of this appears applicable in my case. Please guide how to proceed

Your reading of Section 220(2) is correct.

When a rectification order under Section 154 issues a revised demand, a fresh 30-day interest-free period begins from the date of that revised notice (January 12, 2026 in your case), not from the original 143(1) intimation. Your payments of Rs 8,740 made in November 2025 should be credited against the revised demand of Rs 15,540 before any interest under Section 220(2) is computed.

The Rs 310 charge appears to reflect interest computed from the original November demand date, which is technically incorrect once a rectification order changes the demand amount and issues a fresh notice.

For the correction path when the portal does not offer a rectification option on CPC orders:
1. File a grievance on the e-filing portal under Grievances, selecting CPC as the relevant unit. Describe the interest computation error with dates and payment challans.
2. Write to CPC Bangalore (cpc.bng @ incometax.gov.in) with the 143(1) intimation date, 154 rectification date, payment details, and the specific Section 220(2) calculation error.
3. If unresolved in 30 days, escalate to your jurisdictional Assessing Officer with the same documentation.

For a full breakdown of how Section 220(2) interest works and how CPC demands are contested, this [Section 143(1) demand and refund guide](https://taxgarden.in/blog/section-143-1-intimation-cpc-processing-demand-refund-india) covers the correction and grievance process.

Thank you for the help. I raised Grievances 2 times pointing out the error in calculation of interest under Sec 220(2). On both occasions, CPC replied (withing 3/4 days) that this interest (I hv ealier paid 310/- and now another 90/- is demanded) is a payable demand. 

I hv sen a mail to the Chairman, CBDT but not expecting any response.

I will try to send the details in the mail id provided by you and see what happens! This is an example of user friendliness of our IT Governance!