Canceling the Notice of Demand

Tax queries 115 views 1 replies

For the AY 2021-22, I have paid self-assessed tax before filling the return of income. But not mentioned in the Return.
Notice of demand for Rs 68450 received on 11-Jan-2022, but i have paid tax already through the self-assessed tax.

How to cancel the Demand notice

Action taken by me

1) Through the online portal, Response to notice of demand, one year before - I disagreed and submitted. 

2) There is no reply from Income tax demand.


3) Last 5 month before, I went to Income tax office and gave writing request. Income tax officer gave me Stampe with date on the letter.


4) Online portal, Response to notice of Demand. it is still showing as outstanding.

 

Please suggest - What next action I can take to close the Notice of Demand.
 

Replies (1)

Hey Venkatesan, here’s what you can do to get the Demand Notice cancelled, since you’ve already paid the self-assessed tax but it’s still showing as outstanding:

Steps to resolve your issue:

  1. Check Form 26AS / Tax Credit Statement
    Confirm that the self-assessed tax payment is reflected correctly in your Form 26AS (Tax Credit Statement). Sometimes, the tax payment is not updated timely or correctly, leading to demand notices.

  2. File a Rectification Request (Section 154)
    Since you have already paid tax but didn’t mention it in your return, the demand notice arose due to mismatch. You can file a Rectification Application under Section 154 on the Income Tax e-filing portal, requesting correction of the demand on account of the tax you already paid.

  3. Attach Proof of Payment
    When filing the rectification, attach or upload the challan details/proof of self-assessed tax payment (Challan No, Date, BSR Code, etc.). This will support your claim and speed up processing.

  4. Follow Up with CPC
    After filing rectification, keep checking the status online. The Central Processing Centre (CPC) usually processes rectifications within a few weeks.

  5. If Delay Persists: Approach Jurisdictional AO
    If the rectification doesn’t get processed timely or the demand remains, approach your Assessing Officer (AO) with a written request along with payment proof and previous correspondence. Since you have already visited once, you can follow up with a reminder or escalate to the supervising officer.

  6. Check if Demand is Appealable
    If demand remains after rectification, you can file an appeal with the Commissioner of Income Tax (Appeals) explaining that tax is paid but not accounted for.


Important:

  • Keep all receipts, copies of online submissions, and stamped letters safe as proof.

  • Ensure your tax payment details are correctly quoted in all future filings to avoid this situation.


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