Income tax return (ITR) filing is an annual activity for all Indian citizens, the deadline for which will end on July 31, this year. On submitting the ITR, the tax department checks the declarations and taxes paid to see if all these details match. If the taxes paid are found to be less than what the taxpayers owe, the department issues an ‘outstanding tax demand’ notice.

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A facility has been provided on the e-filing website to provide online responses to such demands. The actions required to be performed by the taxpayer are as under:

Step 1:

Log in to the e-filing portal.

Step 2: Click Pending Actions > Response to Outstanding Demand to view a list of all outstanding demands. For paying the demand, click ‘Pay Now’ to pay the demand.

Step 3: On the 'Response to Outstanding Amount' page, click ‘Submit Response’ to submit a response to outstanding demand. Depending on the scenario, taxpayers can go to the relevant section:

(a) If the demand is correct, but taxpayers have not paid the tax: If the demand is correct, taxpayers can submit that the demand is correct. On such selection, they will be taken to the e-pay tax page, where the tax payment can be done. On successful payment, a success message is displayed along with a transaction ID.

(b) If the demand is correct and tax is paid: If the demand is correct and taxpayers have already paid the tax, they should click ‘Add Challan Details’ and add the details of challan, type of payment (minor head), challan amount, BSR code, serial number, and date of payment. Then, they should click ‘Attachment’ to upload a copy of the challan (PDF) and click save. On successful validation, a success message is displayed along with a Transaction ID.

(c) If taxpayers disagree with the demand (in full or part): If taxpayers disagree with the demand (in full or part), they are required to click ‘Add Reasons.’ Select the appropriate reasons for disagreement, and enter the relevant details. Click Confirm to confirm submission. On successful submission, a success message is displayed along with a Transaction ID.