How to Check Outstanding Tax Demand Status

How to Check Outstanding Tax Demand Status

The process of filing an Income Tax Return (ITR) is mandatory for individuals and businesses as it involves reporting income and fulfilling tax obligations to the government. This procedure necessitates submitting essential financial details and relevant documents to the Income Tax Department. 

Before initiating the filing process, it is crucial to identify the appropriate ITR form corresponding to your income sources and category.

Once you have identified the suitable form, you have the option to file your ITR either online or offline. Online filing is widely preferred due to its convenience. To file online, you will need to access the official Income Tax e-Filing website and create an account. 

Upon logging in, you can choose the appropriate ITR form and furnish the required information, including personal details, income sources, deductions, and tax payments. 

It is vital to be meticulous and accurate when providing the information to prevent any errors or penalties.

Steps to check outstanding tax demand status

First, go to the official website https://www.incometax.gov.in/iec/foportal/ and “log in” to the e-filing portal using credentials.

Then go to the “e-file” menu & Click on ‘Response to Outstanding Demand’. After this, you will be able to see all the outstanding demands here.

After that, click on the “View” option hyperlink available under the “Response” box. ​Then 4 responses will be displayed to you on the screen. 

Choose any one of the listed responses.

1. Demand is correct
2. Demand is partially correct
3. Disagree with demand
4. Demand is not correct but agree to an adjustment

If you chose ‘Demand is correct’, then click on the ‘Submit’ option to ‘Confirm’ and complete the response submission process.

Important things to remember:

• On confirming the ‘Demand is correct’, you won’t be able to disagree with the demand again.
• The refund will be adjusted against the outstanding demand in case any refund is due.
• The taxpayer can pay the demand by clicking the link available under the ‘Pay Tax’ option.

If you chose ‘Demand is partially correct’, then enter the ‘Amount which is correct’ & the ‘Incorrect Amount’ will be filled automatically. Then choose the relevant reasons from the provided list & fill out all the relevant columns as well as upload all the essential supporting documents and ‘Submit’ the response.

If you chose the ‘Disagree with demand’ option, then select the relevant reason from the provided list & fill out all the relevant fields, as well as upload all the required documents and click on ‘Submit’ the response.

If you chose ‘Demand is not correct but agree for an adjustment’, then select the relevant reason from the list & fill out all the relevant fields, as well as upload all the required documents, and click ‘Submit’ the response.

On the successful furnishing of the chosen response, a message including the Transaction ID will be displayed on the screen.

It is worth noting for you that “Filing your Income tax return on time & accurately is a legal obligation. Failing to do so may fetch some penalties and legal consequences. Thus, it is very important to hire a professional expert or consult a tax expert to ensure compliance with tax regulations and make the filing process accurate.

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