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Which challan to use to pay a demand
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Facts
Pay through e-Pay Tax on the e-Filing portal. The simplest way is Pay Now against the Demand Reference Number, which fills the right details. If paying separately, use 'Tax on Regular Assessment' for the correct assessment year.
Provisions and law
- Sec 156, Income-tax Act 1961 (now Sec 289)When tax, interest, penalty or other sum is payable after an order, the officer serves a notice of demand.
Analysis
A wrong minor head, such as self-assessment tax, or a wrong assessment year leaves the demand open and needs correction later. Paying from the DRN avoids these errors. After payment, download the challan receipt and keep the BSR code, date and serial number for any follow-up.
Conclusion
- Open Response to Outstanding Demand.
- Click Pay Now for the DRN.
- Check the assessment year and minor head before paying.
- Pay by net banking, card or UPI.
- Save the challan receipt.
A Savvy can do this for you
Notice of demand, Sec 156 (now 289)
₹4,999
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