Answer

1. F

   Facts

   A scrutiny order comes with a notice of demand. The amount is generally payable within 30 days, unless you get a stay or the officer allows otherwise.

2. P

   Provisions and law

   • Sec 156, Income-tax Act 1961 (now Sec 289, Income-tax Act 2025)Notice of demand for tax, interest or penalty payable.
   • Sec 220, Income-tax Act 1961Interest at 1% a month on demand not paid in time.
   • Sec 143(3), Income-tax Act 1961 (now Sec 270(10), Income-tax Act 2025)Officer passes a scrutiny assessment order after considering evidence.
3. A

   Analysis

   Read the computation sheet to see how the demand was worked out. If you agree, pay through e-Pay Tax as regular assessment tax. If you disagree, file an appeal and ask for a stay of demand, usually with a part payment. Unpaid demand can be adjusted against your future refunds.

4. C

   Conclusion

   1. 1Read the order and computation sheet.
   2. 2Decide whether to pay or appeal.
   3. 3If paying, pay as regular assessment tax and update the portal.
   4. 4If appealing, file the appeal and request a stay.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.