A notice of demand under Section 156 (Section 289 of the 2025 Act) requires payment of tax, interest or penalty arising from an assessment or intimation. Before adjusting a refund against an outstanding demand, the department sends an intimation under Section 2452025 Act: s. 438.
Income Tax, across India (faceless)
Income-tax Act, 1961
This page is for notices and orders under the Income-tax Act, 1961. If yours names the Income-tax Act, 2025, see Demand notice u/s 289 (2025 Act). Not sure which Act applies? The heading of the notice names it, or call us.
What this notice means
Many demands on the portal are old, already paid, or arise from processing errors. Each demand should be verified before payment or adjustment is accepted.
Common reasons it is issued
- Demand from scrutiny or reassessment order
- Demand from CPC intimation due to TDS mismatch or disallowance
- Interest and fee computations
- Legacy demands from earlier years shown on the portal
Time limit to respond
Documents to keep ready
- Demand notice and the order that created it
- Challans and Form 26AS showing payments
- Earlier rectification or appeal orders
How we handle it
- Verify the demand against orders, challans and TDS credits
- Submit ‘response to outstanding demand’ on the portal
- File rectification, stay application or appeal as the case requires
- Follow up for deletion of demands already paid or reduced in appeal
Points to note
- Non-payment without a stay can lead to interest and recovery action
- Demands reduced in appeal are not always updated automatically. Follow up
What usually comes next
- Stay of Income Tax Demand During AppealStopping recovery while the appeal is pending
- Rectification u/s 154Correcting a demand raised in error
- Appeal before Commissioner of Income Tax (Appeals)Appealing the order behind the demand
Frequently asked questions
Can the department adjust my refund against a disputed demand?
It can propose to, but you can disagree online with reasons. Where an appeal is pending, a stay of demand should also be sought.
Official sources
- Authenticate a notice (DIN check)incometax.gov.inConfirm that a notice or order is genuine before replying
- Income Tax e-Filing portalincometax.gov.inReply to notices under e-Proceedings and file first appeals
- Income Tax Departmentincometaxindia.gov.inActs, rules, circulars and the 1961 to 2025 section utility
Received a notice or an order?
Call us to talk it through. Keep the notice and its response date handy.