ITR

Paying a small demand raised in the intimation

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If you agree with the demand, pay it against the Demand Reference Number through Response to Outstanding Demand. Paying this way links the challan to the demand.

Provisions

Sec 156, Income-tax Act 1961 (now Sec 289); Sec 220, Income-tax Act 1961

Analysis

Use the Pay Now option for the DRN so the payment is tagged correctly. You can pay by net banking, debit card, UPI or a payment gateway. Paying within 30 days avoids further interest. After payment, the demand normally shows as closed within a few days; if not, a tax credit mismatch rectification with the challan details clears it.

Close

  1. Open Pending Actions, then Response to Outstanding Demand.
  2. Choose the demand and click Pay Now.
  3. Complete the payment and download the challan.
  4. Check after a few days that the demand shows as paid.
  5. If it does not, file a rectification with the challan details.

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