Answer

1. F

   Facts

   Under Response to Outstanding Demand you can choose 'disagree with demand (either in full or part)', pick reasons from a list, and give details. If no reason fits, choose Others and type it.

2. P

   Provisions and law

   • Sec 220, Income-tax Act 1961A demand is payable within 30 days of service of the notice of demand; simple interest of 1% a month runs after that; the officer may allow more time or instalments, and may treat you as not in default while an appeal is pending (2025 Act number to be confirmed).
   • Sec 245, Income-tax Act 1961 (now Sec 438)A refund can be set off against an outstanding demand after intimation to you.
3. A

   Analysis

   Reasons include demand already paid, rectification or appeal filed, and TDS or credit not given. Disagreeing does not cancel the demand; it tells CPC and the officer why it should not be enforced while you fix it. If you do not respond, the demand is confirmed and set off against future refunds. Give the rectification or appeal reference if you have one.

4. C

   Conclusion

   1. 1Open Pending Actions, Response to Outstanding Demand.
   2. 2Click Submit Response for the demand.
   3. 3Choose disagree, pick reasons and fill details.
   4. 4Attach or quote references for rectification or appeal.
   5. 5Submit and save the response.

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