Outstanding tax demand

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Prince (Querist)
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09 January 2014 I have two amounts reflecting under Outstanding Tax demand for AY 05-06 and AY 07-08. I had a business earlier which was closed in Feb, 2008. I do not have any old documents from my business since I have changed city. How do I clear the Outstanding Tax demand which is reflecting on incometaxindiaefiling.gov.in?

CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
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09 January 2014 pls clarify Demand is due to what reason??

Prince

Prince (Querist)
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09 January 2014 I am not sure. Its showing up on the tab - "Outstanding Tax Demand" on my profile at incometaxindiaefiling.gov.in U/S 143 (1)

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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09 August 2024 To address outstanding tax demands for the Assessment Years (AY) 2005-06 and 2007-08 that are showing up on your profile at [incometaxindiaefiling.gov.in](http://incometaxindiaefiling.gov.in), here’s a structured approach you can follow:

### Steps to Clear Outstanding Tax Demand:

1. **Verify the Demand:**
- Log in to the [income tax e-filing portal](http://incometaxindiaefiling.gov.in) and check the details of the outstanding tax demand. Ensure that the demand is valid and pertains to the correct assessment years.

2. **Obtain Demand Details:**
- Download the **Form 281** (Challan for payment of tax) and review any notices you might have received regarding the outstanding demand. Check for any details regarding the amount and reason for the demand.

3. **Check Old Records:**
- Even if you do not have old documents, try to contact your previous accountant or the office where your business was registered. They might have records or information on how to resolve the demand.

4. **File a Rectification Application (if applicable):**
- If you believe that the demand is incorrect, you can file a rectification request online through the e-filing portal:
- Go to **"Services"** > **"Rectification"**.
- Choose the relevant assessment year and form type (usually, it’s under **"Online"** or **"Manual"**).
- Provide necessary details and documents to support your case.

5. **Make Payment of Demand (if applicable):**
- If the demand is correct and you have confirmed that there are no disputes, you need to make the payment.
- Go to the **"e-Pay Tax"** section on the portal.
- Select the appropriate financial year and payment type.
- Pay the tax through the available payment methods and keep a copy of the receipt.

6. **Contact the Income Tax Department:**
- If you cannot resolve the demand online or if there is a dispute, you may need to contact the Income Tax Department directly.
- Visit the local Income Tax Office or contact them via their helpline or email.
- Explain your situation and provide any available documentation or proof of payment.

7. **File a Grievance:**
- If you are unable to resolve the issue through the regular channels, you can file a grievance with the Income Tax Department.
- Use the **"Taxpayer Services"** section on the e-filing portal to raise a grievance or issue.

8. **Seek Professional Assistance:**
- Given that the demand is for older years and involves a closed business, it might be beneficial to consult with a tax professional or chartered accountant who can assist you with the process, especially if there are complexities involved.

### Summary:
- **Verify**: Check the details of the outstanding demand on the e-filing portal.
- **Obtain Details**: Gather any available records or notices related to the demand.
- **Rectify**: File a rectification request if you believe there is an error.
- **Pay**: Make the payment if the demand is correct and due.
- **Contact Authorities**: Reach out to the Income Tax Department for clarification if needed.
- **Seek Professional Help**: Consider consulting a tax professional for assistance.

By following these steps, you should be able to address the outstanding tax demands efficiently.