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A notice of demand under Sec 156 is the formal bill for tax, interest or penalty that an order has found payable. It is not a new case by itself. It follows an order such as an intimation, an assessment or a penalty order.
ITR
What a notice of demand under Section 156 means
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Provisions
Sec 156, Income-tax Act 1961 (now Sec 289); Sec 220, Income-tax Act 1961
Analysis
For AY 2026-27 and earlier years the demand is under the 1961 Act, so it cites Sec 156, now Sec 289 of the 2025 Act. Read the order that came with it to see why the tax is payable. If the demand is ₹46,300 after a scrutiny order adding ₹1,50,000 of income, the question is whether that addition is right. The notice also gives the date by which to pay, usually 30 days.
Close
- Find the order that the demand notice is attached to.
- Note the amount, assessment year and Demand Reference Number.
- Check the due date, normally 30 days from service.
- Decide whether to pay, rectify, or appeal.
- Respond on the portal before the due date.
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