Answer

1. F

   Facts

   While a first appeal is pending, the officer can treat you as not in default if you apply for a stay. CBDT guidelines from 2016 set a standard payment of 15% of the disputed demand for stay, later raised to 20% by a 2017 memo.

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 246A, Income-tax Act 1961 (now Sec 357)Orders that raise a demand, such as assessments, intimations with adjustments and penalty orders, can be appealed before the Commissioner (Appeals).
3. A

   Analysis

   On a disputed demand of ₹5,00,000, paying about ₹1,00,000 normally gets the rest stayed till the appeal is decided, subject to the officer's discretion. The officer can accept less or ask for more in suitable cases, and you can approach the higher authority if refused. Apply in writing with the appeal acknowledgement. Check the latest CBDT instruction for the current percentage.

4. C

   Conclusion

   1. 1File the appeal first and keep the acknowledgement.
   2. 2Apply to the officer for stay, citing the appeal.
   3. 3Pay the standard percentage or propose a lower amount with reasons.
   4. 4If refused, approach the Principal Commissioner.
   5. 5Keep stay orders safe; renew if asked.

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