TaxTMI 
TaxTMI 
Procedure for response to Arrear demand By Taxpayer And Verification and Correction Demand by AOs
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....to taxpayers on the E-filing website (www.incometaxidiaefiling.gov.in) to provide online responses to such demands. The actions required to be performed by the taxpayer and the AO are being consolidated in this circular as under: 2. Action To be performed by Taxpayers i. Login to e-Filing website with User ID. Password, Date of Birth/ Date of incorporation and Capicha ii. Go to E-file menu and click on "Response to Outstanding Tax Demand". iii. Following details would be displayed. • Assessment Year • Section Code • Demand Identification Number (DIN) • Date on which demand is raised • Outstanding demand amount • Uploaded By • Rectification....
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.... • Stay has been granted by • Instalment has been granted by • Rectification / Revised Return has been filed at CPC • Rectification has been filed with Assessing Officer • Others viii. Based on the reasons selected, the taxpayer need to provide additional information as per the table given below. Reason Selected Additional Detail Required Demand paid and Challan has CIN BSR Code Date of payment Serial Number of challan Amount Remarks (any comments of taxpayer can be included) Demand paid and Challan has no CIN Date of payment Amount Remarks (any comments of taxpayer can be included) Upload copy of Challan Demand already reduced by rectific....
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....mand is partially correct". x. After the taxpayer submits the response the success screen would be displayed along with the Transaction ID. xi. The taxpayers can click on 'View' link under Response column to view the response submitted. The following details are displayed: • Serial Number • Transaction ID • Date of Response • Response Type (Note 1: Where the taxpayer has not registered on the Income Tax Department's e-filing website - www.incometaxindiaefiling.gov.in. he may do so to get details of outstanding demand and also to submit any response. Note 2: Wherever the taxpayer finds it difficult to access income tAx Department Website, he or she may make necessary....
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....the demand by posting the challan or passing rectification order u/s 154 on the system. ii. If the demand is prior to 01/04/2010, the demand has to be reduced directly on the CPC-FAS system. b) If CIN is not available or payment is made prior to the period of introduction of CIN, the reduction can be made only in case of Individuals and HUFs provided outstanding demand does not exceed Rs.1,00,000 for that AY. The AO should follow the steps as under: i. The reduction can be made after obtaining of the document showing evidence of payment in form of taxpayer counterfoil or bank certificate or any communication from Department in respect of payment or adjustment of refund. In case where taxpayer is a senior citizen a....
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....ls and HUFs. Further, the amount of reduction should not exceed Rs.1,00,000 for that AY and AO should take following steps. i. AO should pass order u/s 154 manually after obtaining the TDS certificate from the assessee ont he basis of which claim has been made. ii. In case, the outstanding demand is more than Rs. 25,000 for that AY, irrespective of the quantum of demand being reduced, the AO should obtain an indemnity bond (in the format given in Annexure A) iii) Additionally, in case the demand being reduced under paragraph 4.2. (b)i above, exceeds Rs. 50,000/- for that AY for the assessee, besides obtaining the indemnity bond, approval of Range Head should be taken or file before removing/reducing the demand. ....