Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
Respond on the portal
A demand — usually from a 143(1) intimation or an assessment — must be answered through ‘Response to Outstanding Demand’ on the income-tax portal. You either agree and pay, or disagree (fully or partly), selecting a reason such as ‘demand already paid’ or ‘TDS mismatch’ and attaching proof.
When the demand is wrong
Many demands stem from a TDS or challan mismatch rather than real underpayment. In that case you disagree and may file a rectification request so the department corrects its records. If it is genuinely due, pay promptly to stop interest under Section 220 accruing. Keep the challan/TDS proof handy — that is what resolves most demands.
Don't let it sit — an example
Example: a ₹25,000 demand arises because a deductor filed your TDS late, so it wasn’t credited when your return was processed. Once the TDS reflects, you respond disagreeing and request rectification, and the demand is dropped. Ignored, the same demand can be adjusted against a future refund or escalate to recovery. Our team can review the demand and respond correctly.