ITR

Demand already paid but still showing on the portal

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A demand stays open if the challan was not linked to it, for example when paid under the wrong assessment year or minor head. CPC accepts a tax credit mismatch rectification with paid challan details to fix this.

Provisions

Sec 154, Income-tax Act 1961 (now Sec 287); Sec 220, Income-tax Act 1961

Analysis

Suppose you paid ₹12,000 as self-assessment tax instead of tax on regular assessment, or for AY 2025-26 instead of AY 2024-25. The money is with the department but not against the demand. Use the challan details (BSR code, date, serial number) in a tax credit mismatch rectification, or ask the officer to adjust it. Also reply to the demand as disagree, reason 'demand already paid'.

Close

  1. Download the challan and check assessment year and minor head.
  2. Respond to the outstanding demand choosing that it has already been paid, with challan details.
  3. File a tax credit mismatch rectification with the paid challan.
  4. If the challan year or head is wrong, ask the officer about correction.
  5. Track until the demand shows nil.

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