ITR
Paying only the undisputed part of a demand
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Facts
Yes. If you partly disagree, the portal expects you to pay the undisputed portion and record your disagreement on the rest.
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).
Analysis
Pay the ₹30,000 you accept through Pay Now against the DRN. Mark the remaining ₹90,000 as disputed with reasons, and start rectification or appeal on that part. This stops interest on the amount you accept and shows good faith if you later ask for a stay on the rest.
Conclusion
- Split the demand into accepted and disputed parts.
- Pay the accepted part against the DRN.
- Submit a partial disagreement response for the rest.
- File rectification or appeal for the disputed part.
- Keep the challan and response receipt.
A Savvy can do this for you
Notice of demand, Sec 156 (now 289)
₹4,999
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