Hi Team,
I have received Demand intimation u/s 143(1) from Income Tax department, my CA had made some mistake and there is a demand raised.
My question is if I pay the taxes, do I need to do anything else or will my returns will be processed successfully automatically post payment?
May be a dumb question for everyone, but any help would be appreciated as I am not clear on the process to close this.
Don't worry, once tax paid as per demand raised as per intimation order u/s. 143(1); no other question be raised. The intimation order is as good as the ITR being processed.
Received a demand letter u/s 143(1)? First check whether it is an actual demand or just an intimation confirming zero difference, they arrive in the same format.
If there IS a tax demand:
STEP 1: Compare your ITR data with what the department processed. Most common causes are: TDS credit not matching Form 26AS or AIS, income the system auto-detected that you did not declare, or deductions that were not accepted.
STEP 2: Log into the IT portal > Pending Actions > Response to Outstanding Tax Demand. Two options:
- Agree to the demand: pay the tax immediately to stop interest accruing under Section 234B/234C
- Disagree with the demand: submit a detailed response with supporting documents (Form 26AS, Form 16, TDS certificates)
STEP 3: If the mismatch is a TDS credit issue, use Services > Rectification > TDS Credit Mismatch correction. No XML upload required for this type.
WINDOW: Respond within 30 days of the intimation date. Non-response leads to refund adjustment or recovery proceedings.
If the demand arose from AIS data that is incorrect (bank interest, dividends reported higher than actual), raise an AIS feedback dispute on the portal first, this creates a formal record before you respond to the demand.
This [income from other sources guide](https://taxgarden.in/blog/income-from-other-sources-section-56-92-complete-guide-ay-2026-27) covers Section 56 income that commonly gets auto-added during 143(1) processing and how to deal with it.
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