Interest on Demand 1431a

Hello Experts,

1.  if anyone received a  return of  25k during tax filing . Can demand come after successful refund ?

2.  If there is a demand 1431a raised by income tax  after 2 years ,  will this   amount got refunded (25 K) + Interest for 2 years ?.  Or Interest will be added after non response of demand within 30 days?.

 

Thanks ,

Ravi 

Replies (3)
Quick Summary
This discussion clarifies queries regarding income tax demand notices, specifically section 1431a. It confirms that a tax demand can indeed be raised even after a refund has been successfully processed. Furthermore, interest on the demand is only applied if the amount isn't paid within the specified timeframe after the demand is raised, not from the original refund year.

1. Yes demand can arise after refund also.

2. Interest will be calculated only if demand not paid within stipulated time.

Thanks for the response Dhiraj,

1. Till how many years demand can raise ?  (7 Years ?)

 

2.Lets consider if refund was received during 2019-2020 AY , and Demand got raised in 2025 . So when interest  will be  added on demand will it be  from 2019 or  from 2025  since the demand is raised?.

 

Thanks,

Ravi

1. Generally, upto 4 years

2. From the date of demand raised.

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