Communication on arrear demand

Hi Anand

I am from Gurgaon and I too have received almost the same contents letter (amount is much more in my case) from CPC B'lore yday.

I too have been paying all my taxes and filing returns regularly.

I have been worried since morning if I need to pay this extra money.

The letter says arrears and when I checked section 245, it says something about refunds.

But i have never asked for a refund from the IT dept.

So its all a little confusing. Can someone explain if this money is to be paid to the IT dept?

Thanks

Gaurav

I got same letter yesterday and amount is Rs 16K

I think its some mistake as it should have reached us earlier in case there was some discrepancy

Shy should we pay interest when they havent asked us anything in year 2007-08?

Also i checked my Form 16 and total tax that year was deducted by my organisation so how this figure came now?

Also they should have provided some details on whom to contact and whatever they have privided is a ward name and we cant go to that office .

So forget about it in case you have all form16 and let them come back again

Riase a grievance request through government website.Lets them check it

I too received a similar mail yesterday for an amount of 49k for Assesment year 2008.  I am a regular tax payer and not sure where to complain about it ?

I too have received such a notice.

On searching, i noted that many people have received such notices in last 2 days :

Vishnu : /experts/arrear-demand-notice-804850.asp

Hari & Madhur : /forum/statement-of-arrear-demand-173115.asp

Anand ,Gaurav, Venkat (current thread) : /forum/communication-on-arrear-demand-173214.asp

Shraddha : /experts/communication-on-arrear-demand-805220.asp

A.S.Maniyar : /experts/intimation-u-s-245-from-cpc-banglore-804600.asp

Vanshul : /experts/arrear-demand-notice-for-year-2008-804930.asp

Some more people have complained about the same on LawyersClubIndia too. So it appears many such notices have been mailed in last few days.

I remember there was a glitch last year & many people were sent out demand notices errorneously. Same was reported in Times Of India at that time. Has the same happened this year, i wonder.

Anyway, 2 questions from my side :

(a) Since my " Communication Of Arrears Demand" just says AY is "2008", does this mean AY 2008-09, or AY2007-08 ?

(b) Isn't it too late to be issuing notices for AY 2007-08 or even AY2008-09 ? Isn't there a statutory period to issue such notices ?

Feeling relieved after seeing so many people receiving similar notifications. So what do we do now? Shall we simply ignore the letter or respond (Regd Post A/D) to the Assessment Office asking for detailed explanation? Can we also CC the response to some central office, like that of the Finance Minister?

- AB

Ignore for the timebeing.Just keep filing your taxes for coming years.

Atleast they should have added some annexure showing why we need to pay this tax but they didnt

Dear All,

Communication recd with Subject line "Communication on Arrear Demand" is in response to recent move by the CA fraternity against adjustment of very old demands agst refund due of Asst Yr 09-10 / 10-11.

Various associations had raised their voices agst such kind of wrong adj. by CPC without knowing genuineness / existance of such demands. CPC Authorities incl. Commr. (CPC) has replied in defence that they have provided training to the Jurisdictional ITOs to upload data relating to Old Outstanding Demands from their DC Register. ITOs have uploaded the data but without taking into account any pending rectification application & its processing. So CPC had no choice then to adjust said outstanding demands against refund dues eventhough wrong demands.

When any assessee receives Intimation u/s 143(1) as per which Refund receivable is adjusted against any old outstanding demand, pls check the records pertaining to that asst yr. to verify whether demand raised/adjusted is correct or not. As per Intimation if they say AY 2008 that means Demand adj pertains to Asst Yr. 2008-09 (i.e. yr end 31.03.2008).

If as per the record of the assessee demand is correct but said demand has already been paid then one can write letter for rectification to the Jursidictional ITOs (not to CPC, Banglore) & claim refund for that Asst Yr (i.e. for Asst Yr 2008-09).

In most cases, old demands relates to pending rectifications. In that case, give reminder to rectify & request refund of demand wrongly adjusted. Local Assessing Officer have issued refunds in many cases of the similar nature & they are bound to do it.

Communication recd from CPC with this subject line is just to clarify their stand as who will rectify the wrong adjustment of demand so that no confusion regarding procedure to be followed in such cases.

Regards,

Dear All,

Please contact to your assessing offer with your notice and show him your problem

Dear NJR,

Thanks for the explanation but I still don't get it.

Is it that whoever is receiving this has claimed for some kind of refund in that year and that now CPC is clearing its stand? If so what does it mean? Demand means what and from whose point of view?

I just want to know if this amount is pending on my side and if yes should I need to pay it?

If I ignore, will it cause it any problems later? If yes what kinds?

Thanks

Gaurav

Dear Gaurav,

Communication of Arrear Demand is kind of general communication. It doesn't mean that refund in respect of any asst yr is due & CPC wants to adjust refund amt agst arrear demand. CPC has just communicated the arrear as per Demand Register of Assessing Officer. CPC tries to inform the assessee that this much amt is o/s as arrear alongwith int. If any refund will be due in future in any Asst yr henceforth, CPC database will automatically adjust that demand agst that refund.

Right now u just hv to check correctness of the arrear demand in corresponding asst yrs. Factually if u find demad payable then u hv to pay that amt. Submit paid challan to assessing officer with request to remove arrear from DC Register & as well as from CPC database. If at all AO will work properly, ur demand will be deleted nd will not be adjusted in future.

If otherwise, ur demand is wrongly raised, follow up with AO to rectify it so that demand should be deleted from CPC's databse.

Regards, 

Hi NJR,

I received the communication of arrear demand for AY2007. I am salaried and my employer deduct the TDS. I checked the my Form 26AS and I could see the TDS paid for AY2007. Is there any possibility that AO completely missed out the TDS paid!!!

Also the arrear demand is not giving much details about what is this amount for...and which AO need to be contacted? In the statement of demand section, Initiating demand is mentioned as ACIT/DCIT Tambaram, but the AY2007 saral form stamped by Asst comm of Income tax, Range 14, Bangalore. I am confused which AO do i need to contact?

Currently I am in abroad and not in a position to go directly to meet the AO. Is there any alternative way to submit the documents to AO? 

Please help...

Dear Veera,

Atleast u should file one letter with ur jurisdictional Assessing Officer intimating him about (i) no arrear for AY 2007-08; (ii) rectification if required for short credit of TDS and deletion of wrong demand thereof from Demand Register as well as CPC Database.

As regards jurisdiction, stamp on Saral is not that much of relevance as Salary Returns are also accepted in centralised unit also. Follow up ur matter in the jurisdiction mentioned in Arrear Communication.

Regards,

Dear NJR,

Your understanding of the current situation faced by several assessees is almost perfect and the solutions you have offered are practical.I request your views after perusing the following facts :

1) My mother (for A.Y.2008) and I (for A.Y.2006) also received such E-mail messages from CPC,Bangalore on 23.10.2011 and today I discussed the issue with the A.O. where I filed the Returns for the said years (Salary Processing Centre at BKC,Mumbai) [even though the jurisdictional A.O. mentioned on both the intimations received from CPC was Ward 17(2)-2,Mumbai].

2) In my mother's case,due to a technical error the System had raised a Demand for A.Y.2008-09 but the ITO had on her own motion (without my applying for a rectification) rectified the Demand u/s 154 in 2010.There is no Demand reflecting in their system now.But since CPC,Bangalore has this Demand in their records,she suggested that I wait till this Demand is adjusted against any future refund and subsequently approach BKC,Mumbai and claim the refund for A.Y.2008-09.

3) In my case,while processing u/s 143(1) the system had not included the self-assessment tax that I had paid for A.Y.2006-07 and a Demand was raised on me.But the same was rectified in 2007 on an application by me u/s 154 and a refund issued.Today the A.O. mentioned to me that the rectification must have been carried out manually in 2007 and she suggested the same way forward like the one mentioned for my mother,i.e. wait for the actual adjustment of Demand to take place at a future date in CPC,Bangalore and then approach BKC,Mumbai for refund of Demand amount adjusted against A.Y.2006-07.

Need your expert opinion on :

1) Should I take up the matter with our current jurisdictional A.O. mentioned in the 2 Communications(aka Ward 17(2)-2,Mumbai)? Or should I keep quiet till the Demands are actually adjusted in some future year and then take up the issue with BKC,Mumbai(as suggested by the ITO today)?

2) Does the solution suggested by the ITO at BKC,Mumbai make sense to you?As already explained above,there are no Demands pending in both the cases and I've documentary evidences for the same.But since CPC,Bangalore has made its position clear that it would not involve itself in clearing issues related to old outstanding Demands(as reflected in their system) and would go ahead and adjust the same against future refunds,if any, the only other option left open is to approach my current jurisdictional A.O. but I wonder how helpful it would be.Would be obliged for your advise.

The post is long since I had to give the full facts but trust you would help me out.Helpful suggestions from other experts/Forum members is also requested.Many thanks in advance to all.