How do I adjust my demand for my tax refund?

How do I adjust my demand for my tax refund?

If any refund is due, the refund will be adjusted against the outstanding demand. The taxpayer can pay the demand by clicking the link under ‘Pay Tax’ option. On choosing ‘Demand is partially correct’, Enter the ‘Amount which is correct’ and the ‘Amount which is incorrect’ will be auto filled.

What is response to outstanding tax demand?

Overview. The Response to Outstanding Demand service allows all registered users on the e-Filing portal to view and / or submit response to an outstanding demand on the e-Filing portal, and pay the outstanding demand, wherever applicable.

What is an avoidance transaction?

An avoidance transaction is a single transaction carried out primarily to obtain a tax benefit. Where a transaction, which is primarily tax-motivated, forms part of a series of transactions that is carried out primarily for non-tax purposes, the single transaction will nevertheless be an avoidance transaction.

What is the meaning of income tax notice u/s 245?

Intimation u/s 245 is issued by the Income Tax Department to intimate you that they are adjusting your previous year’s pending tax payable with the current year’s refund. Section 245 gives the Income Tax Department power to adjust any previous year’s demand of tax payable with the current year’s refund.

How do I deal with intimation US 245?

Just login on and follow the below steps:

  1. Click on “My Pending Actions”.
  2. You can then view, details of your outstanding demand and you will see a “Submit” button , you have to click on it and respond to the outstanding demand.

What happens if income tax demand not paid?

Upon failure to pay the whole or part of the demand within 30 days, a taxpayer is treated as an ‘assessee in default’ for the amount unpaid. You shall be liable to pay the outstanding demand along with simple interest at the rate of 1% for every month or part of the month for the period of default.

How do you clear outstanding demand in traces?

Step 1: Login on Traces website as deductor….Step 4: Click on “Total Outstanding Demand” demand table will appear on the screen,

  1. User can click on “Prior year” hyper link to view previous years demand.
  2. User can click on “Manual Demand” amount to close the demand via Tag Challan and navigate to “Tag/ Replace Challan”.

What happens if we dont respond to income tax notice?

Take this notice seriously and respond to it. Bohra says, “Non-compliance can lead to a penalty of Rs 10,000 for each failure to respond. If you don’t respond, the tax office can also complete the assessment ex-parte.” Section 143(3): Once the assessment is completed, the order is issued under Section 143(3).

What happens if you dont reply to legal notice?

The consequences of not replying to notice is not an offence under the law, however, one must bring on record the relevant facts/ averments in his defence. In case no response is sent, and a legal action is initiated by the sender, the Court may take adverse inference against the defaulting party.

What is abusive tax avoidance?

Abusive Tax Avoidance Transaction (ATAT) An abusive tax avoidance transaction means any plan or arrangement devised for the principal purpose of evading federal income tax, and includes but is not limited to, “listed transactions” as defined by the IRS.

How do you respond to a 245 notice?

1. If you agree with the Outstanding Demand: If you agree with the outstanding demand, then simply log onto with your user id and password. Go to ‘e-file’ tab – > Response to outstanding demand – > Submit response – > Demand is correct – > Submit.

How do you pay outstanding demand?

Log in to and click on “My Account” option. Cross-check the outstanding tax demand amount by clicking “Response to Outstanding Tax Demand” link under e-File menu option as shown below. Click on “Click Here” under ‘Pay Tax’ column to pay the taxes online.

How can I check my income tax status in demand?

View Refund/ Demand Status

  1. Login to e-Filing website with User ID, Password, Date of Birth / Date of Incorporation and Captcha.
  2. Go to My Account and click on “Refund/Demand Status”.
  3. Below details would be displayed. Assessment Year. Status. Reason (For Refund Failure if any) Mode of Payment is displayed.

What is notice of demand income tax?

If a taxpayer’s income tax return is in conflict with the assessment made by an Income Tax Officer, the taxpayer will be issued an income tax demand notice. Income tax demand notice is issued if the taxpayer has deposited lesser tax than what the assessee is liable to pay.

How do you pay outstanding tax demand?

  1. Go to the ‘e-File’ menu, Click ‘Response to Outstanding Demand’.
  2. Click the hyperlink ‘Submit’ located under the ‘Response’ column.
  3. As a taxpayer, you can pay the demand by clicking the link under the ‘Pay Tax’ option.
  4. You will be redirected to the NSDL website to pay the tax.

How can traces detect demand?

  1. Login on Traces website as deductor.
  2. Click on ‘Dashboard’.
  3. After clicking on ‘Dashboard’.
  4. Click on ‘Total Outstanding Demand’ demand table will appear on the screen,
  5. – User can click on ‘Prior year’ hyper link to view previous years demand.

What happens after income tax notice?

An income tax notice under Section 139(1) would be issued if the income tax return filed does not contain all necessary information or incorrect information. If tax notice under Section 139(1) is issued, you should rectify the defect in the return within 15 days.

What happens if we get notice from income tax?

The assessing officer sends this notice within 6 months from the end of the financial year in which the return is furnished. After the notice is received by the taxpayer, he/she should reply to the questionnaire issued by the income tax department and submit all the additional documents requested.