Section 156 of Income Tax Act 1961 has been renumbered as Section 289 under the Income Tax Act 2025 (effective 1 April 2026). It is a formal notice issued by the Income Tax Department / CPC when any tax, interest, penalty, fine, or other sum is determined payable by the assessee as a result of any order — such as intimation u/s 143(1) (new 270(1)), regular assessment u/s 143(3) (new 270(3)), reassessment u/s 147 (new 279), rectification, or any penalty order. The assessee must pay the demand within 30 days of service of notice or file a response on the e-filing portal.

The portal offers two primary options under Pending Actions → Response to Outstanding Demand. Option 1: Demand is Correct — sub-options "Not paid yet" (redirects to Pay Now) or "Yes, already paid — Challan has CIN" (enter BSR code, serial number, date, amount, minor head). Option 2: Disagree with the demand (either in full or in part) — click Add Reason(s), select one or more of the 7 prescribed reasons, provide amount-not-payable, upload supporting PDFs, add remarks (up to 2000 chars), and submit. Partial disagreement allowed — pay agreed portion and disagree on balance.

When you have a refund claim pending (from ITR processing or appellate order) but an outstanding demand is also lying against your PAN, the Income Tax Department issues an intimation under Section 245 (renumbered Section 246 in Act 2025) proposing to adjust the refund against the demand. You get 30 days to respond — (a) Agree to the adjustment, (b) Disagree with reasons and documentation, or (c) Pay the demand separately so that refund is released fully. Non-response leads to automatic adjustment. Common trap: department adjusts against a disputed or already-paid demand — that's when expert disagreement with documentation becomes critical.

Non-payment attracts interest u/s 220(2) / new Sec 414(2) at 1% per month or part of month from expiry of 30 days — compounded until payment. Penalty up to the demand amount may be levied u/s 221 / new Sec 416 after opportunity of hearing. The assessee becomes "assessee in default" and coercive recovery proceedings u/s 222–227 / new Sec 417–423 can begin — attachment of bank accounts, salary garnishment, attachment and sale of movable/immovable property, recovery from debtors, and in extreme non-cooperation cases even arrest. Refunds of subsequent tax years are automatically adjusted. Business impact: tender exclusion, loan sanction issues, and compliance ratings drop.

Yes. After filing appeal in Form 35 before CIT(A) / NFAC, file a stay of demand application with the Assessing Officer (not CIT(A)). Per CBDT Instruction No. 1914 read with Office Memorandum dated 31 July 2017 (amended over years), typically 20% of disputed demand pre-deposit is required for automatic stay pending first appeal disposal. In exceptional cases — genuine financial hardship, high-pitch assessment (addition is 2x or more of returned income), or strong prima facie case covered by binding HC/SC rulings — lower pre-deposit or full stay may be granted by PCIT / CCIT. For ITAT appeals, stay jurisdiction lies with the Tribunal itself. CA Alok Kumar drafts the stay petition with grounds, supporting case-law, and financial statements.

Select "Disagree with demand" and click Add Reason(s). Choose one of the three payment reasons — Reason 1 (Demand paid, Challan has CIN, without open challan details), Reason 2 (with open challan details — link the existing challan through the portal), or Reason 3 (no CIN — for legacy pre-CIN payments). Enter the amount not payable, provide challan particulars: BSR code of bank branch (7 digits), challan serial number (5 digits), date of payment, challan amount, and minor head. Upload challan copy in PDF format (bank counterfoil or Form 281 / Form 280). CPC / AO verifies and closes the demand typically within 30–60 days. For older paper challans, verification can take 90+ days.

Rectification u/s 287 (old Sec 154) is applicable only for "mistake apparent from record" — typographical errors, wrong tax computation, incorrect TDS credit, missed deductions already claimed in ITR, incorrect application of tax slabs, arithmetic mistakes, etc. It must be filed to the same authority that passed the order — CPC for Sec 143(1) intimation (new Sec 270(1)), AO for Sec 143(3) / 147 orders. Time limit: 4 years from the end of the financial year in which the order was passed (under old Act; Act 2025 retains this). Appeal is filed before CIT(A) / NFAC when you disagree with substantive findings — disallowance of expenditure, addition of income, rejection of exemption u/s 54 / 10 / 80C etc., or any debatable legal position. Appeal requires Form 35 within 30 days of order receipt, and fee of ₹250 to ₹10,000 depending on assessed income. CA Alok Kumar assesses which route fits your case.

Documents depend on your response reason — For "Demand is correct": challan copy with CIN (if paid), net banking / UPI screenshot as backup. For "Demand paid" reasons (1, 2, 3): BSR code, challan serial, date, amount, minor head; challan PDF; bank statement showing debit. For "Demand already reduced": rectification order / revision order / CIT(A) / ITAT order with appeal-effect order if available. For "Appeal filed" reasons (6, 7): Form 35 acknowledgement, stay petition copy, stay order (if granted), pre-deposit challan (if applicable). General supporting documents: Computation sheet, Form 26AS, AIS, TIS, original ITR copy, intimation / assessment order, demand notice, PAN, DSC / EVC for e-verification. CA Alok Kumar provides a case-specific checklist on engagement.

Yes. Under Sec 220(3) of old Act / Sec 414(3) of Act 2025, the Assessing Officer (with prior approval of JCIT / Addl CIT) can allow payment in installments or extend time beyond 30 days. File a written application before the 30-day window expires, with — (a) exact proposed installment plan (dates and amounts), (b) cash-flow statement / bank statements, (c) financial hardship justification, (d) post-dated cheques or challans as security. Interest u/s 220(2) / new 414(2) continues to accrue on outstanding balance during installment period. Commonly granted for genuine hardship cases and high-value demands where immediate payment would cripple business continuity.

Yes, fundamentally identical process — but NRIs face specific complications: (a) DSC / EVC verification — NRIs without Indian mobile number need alternate verification routes (often via registered email + secondary ID), (b) AO jurisdiction — International Taxation Ward instead of regular AO, (c) time zone coordination for virtual hearings, (d) DTAA and TRC-related substantive issues often at stake, (e) physical presence typically not possible — so authorised representative / ERI access becomes important. CA Alok Kumar serves NRIs in 50+ countries with end-to-end remote engagement — notice analysis, portal response, stay petition, rectification, and CIT(A) / NFAC representation — no physical visit to India required.

After submission, the portal generates a Transaction ID and confirms "Response Submitted" on your demand dashboard timeline. Timeline thereafter: For "Demand is correct + Paid": demand shows "Closed" within 7–15 days once CIN matches. For "Disagree" reasons: CPC / AO examines response + documents. If accepted, AO passes an order giving effect, and demand is reduced / cancelled — typically 30–90 days. If rejected, AO may issue a further notice under Sec 221 / 416 (penalty) or continue recovery. You can re-submit response with additional documents if rejected. Parallel appeal / rectification / stay can run simultaneously. CA Alok Kumar monitors the status and escalates via JCIT / PCIT grievance if no response beyond reasonable time.

Old demands (pre-2015) often carry significant interest and appear as "legacy demand" on the portal. Verify the underlying order — many old demands are actually already paid (but not mapped due to pre-CIN era), reduced by appellate orders (not given effect), or barred by limitation. Possible strategies — (a) File "Demand paid — Challan has no CIN" (Reason 3) with physical challan copy if you have one, (b) File grievance on e-Nivaran / CPGRAMS with attachment of old appellate/rectification orders, (c) Apply for rectification u/s 287 / 154 if within limitation, (d) File writ before High Court for time-barred demands. CA Alok Kumar handles legacy demands through a hybrid approach — portal response + departmental grievance + direct AO / CPC coordination. Many old demands are closed within 2–4 months with right approach.