Answer

1. F

   Facts

   The Interim Budget 2024-25 announced withdrawal of old outstanding direct tax demands up to ₹25,000 for periods up to FY 2009-10 and up to ₹10,000 for FY 2010-11 to 2014-15. Many such entries were cleared from the portal.

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

   If your entry falls in these years and limits, it may already be gone or due to be removed. If it still shows, check the year carefully and raise a grievance or write to the officer rather than paying. Larger or later demands are not covered and should be checked on merits, because old demands are often caused by TDS credit not given or a return not processed correctly.

4. C

   Conclusion

   1. 1Note the assessment year and amount of the old demand.
   2. 2Check whether it falls within the withdrawal limits.
   3. 3If it does and still shows, raise a grievance on the portal.
   4. 4If not covered, open the order and check if it is correct.
   5. 5Respond on the portal so it is not adjusted against a refund without your view.

Check the official order details before relying on the withdrawal; limits apply per entry and per taxpayer.

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