Monday, April 15, 2024

Comprehensive Guide to Addressing Outstanding Tax Demand

Navigating through Outstanding Tax Demands from the Income Tax Department is crucial to ensure that your financial records are accurate and to prevent any automatic deductions from your tax refunds or additional liabilities. Below, you'll find a detailed, step-by-step guide on how to handle these demands effectively.

Why Address Outstanding Tax Demand?

  • Confirm Accuracy: Responding allows you to verify the correctness of the tax demand.
  • Prevent Automatic Adjustments: Unaddressed demands can automatically decrease your refunds or be recorded as an outstanding payable amount against your PAN.

How to Check for Outstanding Tax Demands

To find out if there are any outstanding tax demands against your PAN, follow these steps:

  1. Log In: Access the e-Filing portal using your credentials.
  2. Navigate: Go to Pending Actions and select Response to Outstanding Demand.
  3. Review: You will see a list of outstanding demands, if any, along with their status (e.g., Pending payment/Response needed).

How to Disagree with the Demand

If you disagree with the demand, either fully or partially, here’s how to proceed:

  • Step 1: Select Disagree with demand option.
  • Step 2: Choose whether you disagree entirely or just partially.
  • Step 3: From a dropdown, select a reason for your disagreement. If your specific reason is not listed, select Others.
  • Step 4: Provide detailed explanations for each reason of disagreement, and specify the amount you believe is not due, if partially disagreeing.

Procedure When Your Disagreement Reason is Not Listed

  • Step 1: Choose Others after selecting to disagree.
  • Step 2: Enter a detailed explanation for your disagreement and the applicable non-payable amount.

Viewing Past Responses

To view responses you've previously submitted:

  • Step 1: Log into the e-Filing portal and navigate to Pending Actions > Response to Outstanding Demand.
  • Step 2: Find the specific demand and click View to see your past responses.

Troubleshooting: No Records Found Message

If you encounter a 'No records found' message regarding your revised or rectified return:

  • Solution 1: Attempt the process again, as it could be a temporary system issue.
  • Solution 2: Check the Acknowledgement number of your submitted Rectification or Revised Return to ensure accuracy.

Paying the Tax Demand

If you agree with the demand (fully or partially), here are the methods to make the payment:

  • Online Payment Options:

    • Net-banking
    • Debit Card
    • Payment Gateway (Credit Card/Debit Card of Non-Authorized Banks/Net Banking of Non-Authorized Banks/UPI)
  • Offline Payment Options:

    • NEFT/RTGS: Generate a Mandate Form for submission at your bank or for online transfer.
    • Over the Counter: Pay via Cash, Cheque, or Demand Draft at any bank branch.

How to Find a Missing Challan

If you need to attach a copy of the challan but can't find it:

  • Online: Log into your net banking and reprint the challan.
  • Offline: Visit your bank branch to request a reprint of the challan.


Efficiently handling Outstanding Tax Demands ensures that you only pay the tax that is genuinely due and helps maintain a clear record with the tax authorities. Regular checks and timely responses to any demands can prevent future complications and ensure your tax refunds are not improperly adjusted.