Outstanding tax demand of 2 lakhs even after paying tax!

Tax queries 952 views 1 replies

Hello Tax Experts!

Quick question: I noticed some huge amount in my outstanding tax demand in AY2008-09 even after paying all taxes, what should I do?

More details:

I have been a regular tax payer for over a decade. I started using the e-filing facility when it bacame available, but never bothered to explore that site apart from yearly tax filings. 

Recently I happened to view the "Outstanding tax demand" page in the site and I was shocked to see that there is an outstanding demand of over 200000 rupees for AY 2008-09. I am sure that I had paid all my taxes for FY 2007-08 (It was deducted at source from my employer). 

The weird thing is that, the outstanding tax demand page is inconsistent - sometimes it lists nothing, sometimes it lists the amount for AY2008-09 and sometimes it lists Rs 3/- for another AY. 

Here is how it lists it:

I double checked my ITR-V for AY2008-09 and also the form16 given by my employer and it has the proof that my tax has been paid:

Do you think I should be alarmed? Should I raise a rectification request for this issue or just stay low and do not bother about it at all?

During that financial year, my only income was from Salary and there was no other income. 

Thanks in Advance!

Replies (1)

Everytime you file return, you will receive intimation u/s.143(1) with in one year from the end of year in which you filed return. You should consider it seriously and check whether it is in match with your form-16. if there is difference, the difference may be due to wrong mentioning of PAN number or non offering of a particular income. So consider 143(1) issed for A.Y 2008-09 and check where department deviates from your computaion of tax. For eg.some timed dept. may not consider T.D.S or Advance tax paid by you. So after considering it would be advisable for you either to file Rectification order or pay such tax as insisted by dept. Generally to rectified order, dept. has four years form the end of financial year in which notice u/s.143(1) issued. So for A.Y 2008-09, the dept. will send you notice on or before 31st march,2013. so discuss this matter with your nearst auditor. Indeed if time for request for rectification has expired as per sec.154, you can go for appeal against 143(1) previously issued to you with Cheif commissioner or Commission of Income tax(appeals) with nominal fee of Rs.250 or 500 as case may be.


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