How to Respond to an Outstanding demand at incometax.gov.in? Outstanding demand can be raised by the income tax department for various reasons such as incorrect selection of ITR form, incorrect IT filing due not including TDS, Self-Assessment tax challans, not filing certain forms or other processing errors by CPC.
1. What is an outstanding demand notice?
The income tax department may issue an outstanding demand for a variety of reasons, including improper selection of ITR form, incorrect IT filing due to not including TDS, Self-Assessment tax challans, failure to file specific forms, or other processing issues by CPC.
Assessing Officer : In some cases, assessing officer may issue the demand notice. Such cases might be scrutiny notices, rectifications pending with AO etc.IMPORTANT: In such a case, ensure that the DIN (Document Identification Number) associated with the notice is accessible online through your ITD account. Do not encourage recipients to respond to emails from officers that do not originate from the domain of the income tax department. Additionally, do not reply to calls from arbitrary mobile numbers.
3. How to check Outstanding demand through the Income Tax Portal?
Outstanding demand will be adjusted against any future refunds
OBSERVATION
In India, tax regulations are becoming increasingly stringent since it is vital to instill basic discipline in order to pay basic tax. We (Indians) have one of the lowest rates of tax compliance worldwide. We at EZTax urge that you settle as soon as you become aware of any demand or discrepancy; otherwise, the cost will be substantially higher.
In addition, certain accountants in India cooperate closely with the evaluation officers. It is imperative that you do not use back channels to resolve your issues, as they may backfire due to the fact that your IT systems are all online and difficult to update, and the AOs are always shifting because you are not aligned with a single jurisdiction. All Online.
6. Deadline for responding to Outstanding demands
Typically, taxpayers are given 30days to reply to a demand from the date of notification or notification. The deadline is unique to the circumstance in which the request was made.
7. Type of Payment
When the taxpayers are making the payment in response to outstanding demand, they need to select 400-Tax on Regular Assessment while paying
The State Government of Rajasthan has notified the “Amnesty Scheme-2024” under the Rajasthan Goods and Services Tax Act, 2017. This scheme, in force until 31.07.2024, offers rebate of tax and settlement of outstanding demands and disputed amounts. It applies to dealers and persons with outstanding demands or disputed amounts up to 30.06.2017, excluding certain cases. The scheme outlines various definitions, benefits, conditions, and procedures for availing them. It provides a detailed explanation and provisions for cases pending under the Amnesty Scheme-2023. For further details, you can download the full document here.
(2) This scheme shall come into force with immediate effect and shall remain in force upto 31.07.2024.
Application.- This scheme shall be applicable to all dealers or persons having outstanding demands or disputed amounts under any Act in respect of period upto30.06.2017, except outstanding demand or disputed amount pertaining to Rajasthan Value Added Tax Act, 2003 and the Central Sales Tax Act, 1956 in respect of goods included in the Entry 54 of the State List of the Seventh Schedule to the Constitution of India.
Definitions.- (1) In this scheme, unless the subject or context otherwise requires,
(ii) The Rajasthan Sales Tax Act, 1994 (Act No. 22 of 1995);(iii)The Central Sales Tax Act, 1956 (Central Act No. 74 of 1956):
(iv) The Rajasthan Value Added Tax Act, 2003 (Act No. 4 of 2003);(v) The Rajasthan Tax on Entry of Goods into Local Areas Act, 1999 (Act No. 13 of 1999);
(vi) The Rajasthan Tax on Entry of Motor Vehicles into Local Areas Act, 1988 (Act No. 14 of 1988);(vii) The Rajasthan Entertainments and Advertisements Tax Act, 1957 (Act No. 24 of 1957);
(viii) The Rajasthan Tax on Luxuries (in Hotels and Lodging Houses) Act, 1990 (Act No. 9 of 1996); and
(ix) The Rajasthan Tax on Luxuries (Tobacco and its Products) Act, 1994 (Act No. 11 of 1994);
(b) “Applicant” means any dealer or person who conveys his willingness for availing benefit under this scheme;
(d) “Dealer” means any dealer as defined under the Act:
(e)”Declaration Form” means the statutory formcertificate prescribed under theAct for sale or purchase of goods at concessional rate of tax or exemption fromtax;
(f)”Demand and Collection Register (DCR)” means the register containing thedetails, in the form of entries, of outstanding demand(s) pertaining to anyassessmentthe ward level either on departmental portal orphysical form;(g) “Department” means the Commercial Taxes Department, Rajasthan;
(h) “Difference Tax” means difference between full rate of tax applicable in State under the Act and concessional rate exemption which is applicable on submission of declaration form;
(i) “Disputed Amount” means any tax, interest, fee penalty for which any show cause notice has been issued or against which an appeal, revision, writ petition or special leave petition is pending or contemplated including that pertaining to cases which have been remanded by any authority;
(j) “Final amount” means the amount of outstanding demand or disputed amount which the assessing authority determines after adjustment/ rectification/ reassessment etc., if any;
(k) “Outstanding Demand” means any demand pertaining to the Act, which ispendingthe Demand and Collection Register; and
(1) “Tax” shall include the composition amount or lump sum lieu of tax and exemption fee.
(2) The words and expressions used in this scheme but not defined shall have thesame meaning as assigned to themthe Act to which the outstanding demand ordisputed amount pertains.
Benefits under this scheme.- The rebate of tax and waiver of interest, penalty or fee shall be to the extent as mentioned in column number 4 of the Table given below on fulfilment of conditions as mention in column number 3, for the category of outstanding demand or disputed amount as mentioned in column number 2 of the said table and the conditions mentioned in clause 5 of this scheme:
Explanation:
(1) Where any dealer conveys his willingness for availing benefit of this scheme and depositsthe required amount upto 31.07.2024 or within ten days from the day on which the assessingauthority conveys the final amount required to be paid under this scheme, whichever is later,he shall be eligible for the benefits available in the scheme. In case, the dealer fails to depositthe final amount in the time specified above, he shall not be eligible for any benefit under thisscheme. However, the Commissioner may, if he is satisfied that the applicant was preventedby sufficient cause from paying the required amountthe stipulated time, condone suchdelay and may allow the applicant to avail the benefits under this scheme.
(2) Where any amount has been deposited prior to issuance this scheme against the demand after its creation, including the amount deposited for filing of an appeal, and if optionis being submitted for the balance outstanding demand/ disputed amount, the amount already deposited, if not adjusted in the Demand and Collection Register (DCR) prior to the issuance of this scheme and if not specifically mentioned in the challan, shall be adjusted firstly against the liability of tax, then it shall be adjusted against the liability of interest, penalty andlate fee, respectively. However, if any amount has been deposited in compliance of any courtorder, it shall be adjusted accordingly. The benefits of this scheme shall be available only forthe balance of outstanding demand/ disputed amountper the provisions of this scheme.
(3) Whereoutstanding demand or disputed amount comprises entirely of interest and/ orpenalty and/ or late fee, in such cases, the amount of tax shall be deemedhave beendeposited.
(4) For category of outstanding demand or disputed amount wheredealer or person is notrequired to deposit any amount as per the Table above, in such cases, he may convey thesame to the Assessing Authority. In cases where no intimation is received from the dealerperson, the assessing authority may proceed to dispose the case at his own level.
(5) Where the outstanding demand or disputed amount pertaining to the period upto30.06.2017 has already been deposited and demand for interest pertaining to the same isleviable but not levied, in such cases the interest payable alongwith the interest accrued uptothe date of order under this scheme shallwaived to the extent -the Table above.
Where any application for adjustment/ rectification/ reassessment etc. related to thedemand, for which the dealer or person intends to opt under this scheme is pending before theassessing authority concerned, thenintimation in writing from dealer or person, he shalldispose it on priority basis.
(7) In cases pertaining to disputed amount for which the demand is not outstanding in theDemand and Collection Register (DCR), the amount of tax, interest, late fee and/ or penaltyshall be deemed to be as per the original assessment/ reassessment order or show cause noticeissued in regard of the said disputed amount. In such cases,assessing authority concernedshall withdraw the proceeding, if any, pending before himself or submit an application forwithdrawal of the case pending before any Court or Tax Board or Appellate Authority, as thecase may be, after deposit of prescribed amount as per the Table above, within the stipulatedtime.
(8) Where the case of prosecution has been filed section (1) of section 67 of the Rajasthan Value Added Tax Act, 2003similar provisions of the repealed Act(s) and the applicant has deposited the amount as required under this scheme, the assessing authority shall proceed to withdraw the case from the court. the department under clause (d) of sub
Conditions.- The benefits of this scheme shall be available on the fulfillment of thefollowing conditions, namely:
(i) The applicant has deposited the amount required as per column number 3 of theTable above and as per Explanation (1) to clause 4 above;
(ii) The applicant has submitted an undertaking for withdrawal of case, if any,pending before any Court or Tax Board or Appellate Authority, as the case maybe, within the operative period of this scheme; and
(iii) No refund for any year or regarding any Act shall belowed if it is co-related inany manner due to rebate of tax and/ or waiver under this scheme.
Procedure for availing benefit.- (1) To avail the benefit under this scheme, theapplicant shall electronically convey his willingness on the Commercial Taxes Department’swebsite http://www.rajtax.gov.in regarding the samethe concerned Assessing Authority.
(2) Separate intimation of willingness shall be conveyedoutstanding demand/ disputedamount under separate Acts as wellbefore separate Assessing Authorities.
(3) In case of any dealer or person opting for benefits under this scheme, the Assessing Authority shall electronically convey the details of pending demand(s) and disputed amount(s) against dealer or person along with the payment to be made in pursuance of this scheme and consequent benefits to be accrued.
(4) The detailed procedure, clarification and order for removal of difficulties,any, foravailing benefit under this scheme shall be as notified by the Commissioner, CommercialTaxes Department, Rajasthan.
(5) In case of any dispute regarding the categorization of outstanding demanddisputedamount under serial number 1 to 3 of the Table above, the decision of Commissioner,Commercial Taxes shall be final.
Provisions for cases pending under Amnesty Scheme-2023.– (1) Where a dealerhas opted for payment in instalments under Amnesty Scheme-2023 and has paid anyinstalment, such cases shall be governed by the provisions of the said scheme of 2023.
(2) In all other cases not covered under sub-clause (1) above, in which any task is pendingunder Amnesty Scheme-2023 prior to the issuance of this scheme, willingness submittedundersaid scheme of 2023 shalldeemedhave been submitted under this scheme andamount required to be paid shall be communicated afresh to the dealer as per the Table of thisscheme. The amount deposited, if any, under Amnesty Scheme-2023 shall be adjusted againstthe amount required to be paid as per the Table of this scheme..
(3) No refund of any payment already made under Amnesty Scheme-2023 shall be alloweddue to rebate of tax and/or waiver under this scheme.
Do note that if the Income Tax Department confirms that you are eligible for a refund on your ITR after processing the income tax return. If they confirm it, only then will receive an ITR refund. If your income tax return has been processed, the refund usually gets credited within four to five weeks, as per the Income Tax Department.
This step is a must
To get an ITR refund, your bank account should be pre-validated. In case the bank account is not pre-validated, you will not receive a refund.
Do note that it is mandatory to e-verify your income tax return to get a refund. As per the latest rules, you need to e-verify your ITR within 30 days of filing it. So, if you haven’t e-verified your return, you will not be eligible for an ITR refund.
Is outstanding demand pending?
Your income tax refund can also be delayed if you have any outstanding demand pending from the previous financial year. If there is any outstanding demand pending, then your income tax refund will be adjusted against that demand. The same will be informed to you via intimation notice issued under section 143(1). Thus, once your ITR is processed, it is important to ensure that you have received an intimation notice. Once it is received, you should check and confirm that the income tax refund is pending with you.
You will be redirected to a new window. Enter your PAN/TAN in the specified box. You can select the ‘Assessment Year’ from the dropdown menu. You can find these details in your income tax return acknowledgment receipt.
Enter OTP
You also have to enter your mobile number in the ‘Mobile’ box. An OTP will be sent to your registered mobile number. Enter the 6-digit OTP in the next step. Click on the ‘Continue’ button.
And it’s done
In the next step, the status of your income tax refund will be displayed on the screen.
How to Request for Refund Re-issue (in case of refund failure)
To request for Refund Re-issue, please follow the below steps:
