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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.
ITR
Stay of demand while the CIT(A) appeal is pending
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Provisions
Sec 220, Income-tax Act 1961; Sec 246A, Income-tax Act 1961 (now Sec 357)
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.
Close
- File the appeal first and keep the acknowledgement.
- Apply to the officer for stay, citing the appeal.
- Pay the standard percentage or propose a lower amount with reasons.
- If refused, approach the Principal Commissioner.
- Keep stay orders safe; renew if asked.
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