₹21,300 left every month
TaxSavvy for demand notice
Tax demand on the portal? Pay or dispute, rightly.
We check if the demand is correct, then pay, rectify or contest it.
If you wait: Interest of 1% a month once the 30 days pass (Sec 411, old 220(2))
How we get it done
Four steps, the same for every job. You see each one ticked.
Information
PAN. Notice, all pages, with DIN
Discussion
Is the demand correct?. Already paid?
Forms
Verify demand on portal. Response to outstanding demand
Deliverables
Response or payment proof. Appeal or stay acknowledgement if filed
See what you get, free
Real formats, made with dummy data.
Sample Sample ₹36,280 less tax in the new regime
Sample Net worth ₹14.9 lakh
Questions, answered the CA way
Facts, Provisions and law, Analysis, Conclusion.
Section 270(1) (old 143(1)): Intimation and Demand
- Facts
- The most common IT notice, sent automatically by the CPC computer. Not a scrutiny notice. Not a raid. But if ignored or mishandled, the demand amount gets locked and interest begins. Most Sec 270(1), Income-tax Act 2025 (old Sec 143(1)) demands can be reduced to zero.
- Provisions and law
- Sec 270(1) (old 143(1)); Sec 270(2) (old 143(1)(a)); Sec 289 (old 156); Sec 154; Sec 263(5) (old 139(5))
- Analysis
- What triggers Sec 270(1) (old Sec 143(1)) demand: (1) AIS shows income not declared in ITR, most common. (2) TDS in Form 168 (old Form 26AS) not matching claimed TDS in ITR. (3) Deduction claimed exceeds limit. (4) Arithmetical mistake in ITR. (5) Carried-forward loss claimed without filing return in loss year. Three possible Sec 270(1) (old Sec 143(1)) outcomes: (A) Refund, CPC agrees with your return, issues refund. (B) No demand, no refund, CPC processing matches your return. (C) Demand, CPC finds discrepancy, raises a demand. Do NOT just pay the demand: Sec 270(1) (old Sec 143(1)) demands are often incorrect. In the most common case, FD interest in AIS that taxpayer forgot to declare, the demand is valid but the penalty is avoidable. In the second most common case, TDS credit mismatch due to PAN error by employer, demand is incorrect and should be rectified. Response options: (A) Agree, pay demand.
- Conclusion
- Download Sec 270(1) (old Sec 143(1)) intimation PDF from IT portal, check exact demand amount and reason
- Compare CPC's income computation vs your filed ITR line by line
- Check AIS, identify which item CPC flagged as not declared
- Check Form 168 (old Form 26AS) TDS credits vs TDS you claimed in ITR, any mismatch?
Section 156 (now 289), Demand notice: pay or dispute within 30 days
- Facts
- 156 is a demand notice, the IT department has assessed that you owe a specific amount of tax, interest, and/or penalty. This comes after a 143(3) (now Sec 270(10)) or 147 assessment order.
- Provisions and law
- IT Act 1961, Sec 156 (now 289) | Sec 220 (interest on demand) | Sec 221 (penalty for non-payment)
- Analysis
- You have two options within 30 days: (1) Pay the demand, if you agree it's correct. Pay on IT portal under "e-Pay Tax." Get a challan receipt. (2) File an appeal (CIT(A)), if you dispute the demand. On filing CIT(A), you can request a stay of demand (usually 20-25% of demand must be paid as a pre-condition for stay). If you miss 30 days: 1% per month interest under Sec 220(2) starts running. If you still don't pay, Sec 221 penalty can be levied up to the amount of the demand.
- Conclusion
- Demand ≤₹1L and you agree: Pay immediately. Done.
- Demand is clearly wrong (AIS mismatch): File 154 rectification. Request demand stay pending rectification.
- Demand is from assessment order you dispute: File CIT(A) within 30 days. Pay 20% and request stay on balance.
- Cannot pay and appeal pending: Apply for installment plan under Sec 220(3), AO can grant. Rare but available.
Section 270(8) (old 143(2)): Scrutiny Notice
- Facts
- This is NOT automated, a human officer has selected your return for detailed examination. Specific income, deduction, or transaction is under review. Must be responded to with documentary evidence within the timeline given.
- Provisions and law
- Sec 270(8) (old 143(2)); Sec 270(10) (old 143(3)); Sec 144; Faceless Assessment Scheme 2020; Sec 271(1)(c)
- Analysis
- Why your return was selected: (1) Large refund claim, officer verifies legitimacy. (2) High deductions claimed relative to income (e.g. Sec 123, Income-tax Act 2025 (old Sec 80C) of ₹1.5L on ₹3L income). (3) AIS shows transactions not declared (property purchase, large FD). (4) Specific issue risk profiling by IT department. (5) Information from third party (bank, registrar). Faceless assessment, how it works: Notice arrives on IT portal (also email). You respond online through IT portal → e-Proceedings → Response. Upload documents in PDF. No personal appearance. Officer is anonymous, from a different city. National Faceless Assessment Centre (NFAC) coordinates. What to submit: Depends on the specific query in the notice. Common documents: Bank statements, salary slips + Form 130 (old Form 16), investment proofs (ELSS receipts, PPF passbook), home loan certificate, rent receipts, capital gains statement, property registration documents.
- Conclusion
- Login to IT portal → e-Proceedings → View notices (Sec 270(8) (old Sec 143(2)) notice visible)
- Read notice carefully, identify exactly which item / transaction is under scrutiny
- Note response deadline from notice, calendar the date immediately
- Gather all documents related to the queried item (not your entire file)
CIT(A) appeal: Form 35 (now Form 99), grounds, and stay of demand
- Facts
- Filing CIT(A): Form 35 (now Form 99) online on IT e-filing portal. Statement of facts + grounds of appeal + supporting documents. Appeal fee: ₹250 (assessed income ≤₹1L), ₹500 (₹1L-₹2L), ₹1,000 (above ₹2L).
- Provisions and law
- IT Act, Sec 246A (now 357), 249, 250 | Form 35 (now Form 99) | CBDT Instruction 1914
- Analysis
- Grounds of appeal are the most critical document. Each ground = one legal argument for why the addition is wrong. Grounds not raised at CIT(A) cannot be raised at ITAT. Be comprehensive, include all possible defences even if some are weak. Stay of demand: Pay 20% of disputed demand as pre-deposit condition for automatic stay under CBDT Instruction 1914. If you can't pay 20%, apply for lesser-stay explaining financial hardship, CIT(A) has discretion.
- Conclusion
- File within 30 days of assessment order (condonation of delay available but harder)
- Pay 20% of disputed demand or apply for stay separately
- Prepare detailed grounds of appeal, be comprehensive
- Attach: assessment order, demand notice, ITR, all correspondence
Tax demand on the portal? Pay or dispute, rightly.
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