Income tax demand notice response: 7

7. How do I pay the outstanding tax demand ? You can make payment of your Income Tax Demand through the e-Filing portal in the following ways: Directly pay tax by clicking the Pay Now option for the respective DRN ( Demand Reference Number) on the Response to Outstanding Demand page; or The Income Tax Department might notify you of an outstanding tax liability through a demand notice on the e-filing portal. This can arise for various reasons, such as a mismatch between your declared income and the department’s records, miscalculations in your Income Tax Return (ITR), or late filing of the ITR. After you file your return, the Income Tax Department officials scrutinise the tax declarations and look for any mismatches or discrepancies in the details. They issue an 'outstanding tax demand ' if something is amiss. You need to understand the meaning of the notice and the steps to respond to it to avoid penalties and legal action. We have a comprehensive guide to help you address both concerns. For complex notices (like Section 143 (2) scrutiny, Section 148 for income escaping assessment, or if you disagree with a significant demand ), it is highly advisable to consult a tax professional (Chartered Accountant) to assist you in preparing and submitting your response .