Income tax notice for the payment of outstanding demand

Hello,

My client has received the notice for the payment of outstanding demand for AY 2014-15. For the AY 2014-15, he had filed the Income tax return physically and not online. As per intimation, Income Tax department has not considered TDS fully, which was claimed by the client in his return. My client has claimed the TDS as per 26 AS.

For Example: Assessee has claimed the TDS of Rs 10000/- (which is matched with 26AS) but IT department has considered only Rs 3000/- and sent a notice of Rs 7000/-.

What procedure should be followed?

1) Should I need to write a letter to IT officer of the concerned ward and submit it physically?

2) Or Should I give response to notice online, stating ‘disagree with demand’ and write down the details in comments option?

3) Both of the above.

Please help me.

Aarti

Login to e-Filing website with User ID, Password, Date of Birth/ Date of Incorporation and Captcha.
Go to My Account and click on "Response to Outstanding Tax Demand".
Below details would be displayed.
- Assessment Year
- Section Code
- Demand Identification Number (DIN)
- Date on which demand is raised
- Outstanding demand amount
- Uploaded By
- Rectification Rights
- Response- Submit and View
Taxpayer must click on "Submit" link under Response column for the respective AY in order to submit the response.
Taxpayer has to select one of the options from the radio button.
- Demand is correct
- Demand is partially correct
- Disagree with demand
If taxpayer selects "Demand is correct", then a pop up is displayed as "If you confirm "Demand is correct' then you cannot 'Disagree with the demand'. Click on "Submit". A success message is displayed.
- If any refund is due, the outstanding demand along with interest will be adjusted against the refund due.
- In any other case taxpayer has to immediately pay the demand.
If taxpayer selects "Demand is partially correct", then "Amount which is correct" and "Amount which is incorrect" has to entered.
If taxpayer has provided 'amount which is incorrect' then he should mandatorily fill one or more reasons for stating so as listed below:
- Demand has been already Paid –
  1. Demand paid and Challan has CIN
  2. Demand paid and Challan has no CIN
- Demand has already been reduced by rectification/revision
- Demand has already been reduced by Appellate Order but appeal effect has to be given by Department
- Appeal has been filed and
  1. Stay petition has been filed with
  2. Stay has been granted by
  3. Instalment has been granted by
- Rectification / Revised Return has been filed at CPC .
- Rectification has been filed with Assessing Officer.
- Others

Based on the reason selected, the assessee needs to provide additional information as per the below table.

Reason Selected	Additional Details Required
Demand paid and Challan has CIN	BSR Code
	Date of payment
	Serial Number
	Amount
	Remarks
Demand paid and Challan has no CIN	Date of payment
	Amount
	Remarks
	Uplaod copy of Challan
Demand already reduced by rectification / Revision	Date of Order
	Demand after rectification/ revision
	Details of AO
	Upload Rectification / Giving appeal effect order passed by AO
Demand already reduced by Appellate Order but appeal effect to be given	Date of Order
	Order passed by
	Reference Number of Order
Appeal has been filed: Stay petition has been filed	Date of filing of appeal
	Appeal Pending with
	Stay petition filed with
Appeal has been filed: Stay has been granted	Date of filing of appeal
	Appeal Pending with
	Stay granted by
	Upload copy of Stay
Appeal has been filed: Instalment has been granted	Date of filing of appeal
	Appeal Pending with
	Instalment granted by
	Upload copy of stay/instalment order
Rectification / Revised Return filed at CPC	Filing Type
	e-Filed Acknowledgement No.
	Remarks
	Upload Challan Copy
	Upload TDS Certificate
	Upload Letter requesting rectification copy
	Upload Indemnity Bond
Rectification filed with AO	Date of application
Rectification filed with AO	Remarks
Others	Others

Note: Total Attachments size cannot exceed 50 MB.

If assessee selects "Disagree with the Demand", then assessee must furnish the details for disagreement along with reasons. Details / Reasons are same as provided under ""Demand is partially correct".
After assesse submits the response the success screen would be displayed along with the Transaction ID.
Assessees can click on 'View' link under Response column to view the response submitted.