Income Tax Demand Notice in Patna Outstanding Tax Demand Response, Section 220(6) Stay & Rectification

Section 156 Income Tax Demand Notice in Patna — 30-day window and sources

Every Income Tax Demand Notice in Patna is served under Section 156 of the Income Tax Act, 1961. The Income Tax Demand Notice in Patna is issued when any tax, interest, penalty, fee or other sum becomes payable as a consequence of an order passed under the Act. The notice is the statutory instrument that creates the outstanding tax demand.

Once served, the taxpayer must pay within 30 days under Section 220(1) or file a demand response on the portal against the Income Tax Demand Notice in Patna.

Sources of an Income Tax Demand Notice in Patna

• Section 143(1)(a) — intimation after processing, adjusting for arithmetic errors, TDS mismatch or incorrect claims.
• Section 143(3) — scrutiny assessment order with additions.
• Section 144 — best judgment assessment.
• Section 147/148 — reassessment order.
• Section 154 — rectification order.
• Section 270A — penalty order for under-reporting.
• TDS default orders under Section 201 or 206C(6A).

30-day window for the Income Tax Demand Notice in Patna

Outstanding tax demand on the portal — from the Income Tax Demand Notice in Patna

The outstanding tax demand shown on the e-filing portal under Pending Actions → Response to Outstanding Demand is the visible manifestation of the Income Tax Demand Notice in Patna. Most outstanding tax demands arise from CPC processing errors, TDS mismatches or wrong tax regimes — not from substantive additions.

Section 143(1)(a) — the most common source of the outstanding tax demand

• Rectification of any arithmetic error in the return.
• Correction of any incorrect claim apparent from the return.
• Disallowance of any loss claimed where the return was filed beyond the due date.
• Disallowance of expenditure in the audit report but not actually incurred.
• Addition of income in Form 26AS, Form 16 or Form 16A not included in the return.
• Addition of income in the return schedules but not in the computation.

Common triggers of an outstanding tax demand after processing

An unresolved outstanding tax demand from an Income Tax Demand Notice in Patna can lead to Section 245 refund adjustment, blocking of e-filing privileges, and recovery under Section 222 or 226(3), with interest at 1% per month under Section 220(2).

Demand response against the Income Tax Demand Notice in Patna — four options

The demand response is filed on the e-filing portal under Pending Actions → Response to Outstanding Demand. This is the primary statutory reply to every Income Tax Demand Notice in Patna. A demand response is required within 30 days.

The four demand response options

Consequences of not filing the demand response

If no demand response is filed within 30 days of the Income Tax Demand Notice in Patna, the outstanding tax demand is treated as accepted, interest accrues under Section 220(2), and recovery can proceed through Section 222 (TRO) or Section 226(3) (garnishee notice).

Section 154 rectification and Section 220(6) stay — resolving the Income Tax Demand Notice in Patna

Once the demand response is filed, the taxpayer must resolve the outstanding tax demand through rectification or challenge the Income Tax Demand Notice in Patna through an appeal with a stay application.

Section 154 — rectification of the Income Tax Demand Notice in Patna

Where the Income Tax Demand Notice in Patna arises from a CPC processing error under Section 143(1)(a), the remedy is a rectification application under Section 154 (now Section 287 of the Income Tax Act, 2025, for orders from 1 April 2026). The three rectification categories are: Reprocess the Return, Tax Credit Mismatch Correction, and Return Data Correction.

Section 220(6) — stay of demand pending appeal

Where the Income Tax Demand Notice in Patna arises from a substantive assessment order, the taxpayer must file a Form 35 appeal under Section 246A and simultaneously apply for a stay of demand under Section 220(6). Under CBDT Instruction 1914, the AO shall grant stay on payment of 20% of the disputed demand.

Section 245 refund adjustment against the Income Tax Demand Notice in Patna

Where a taxpayer has a refund due and an outstanding tax demand arising from an Income Tax Demand Notice in Patna from an earlier year, the Department may adjust the refund against the demand under Section 245.

Section 245 — prior intimation is mandatory

Section 245 requires the Department to send a prior intimation in writing before making the adjustment. The taxpayer has 30 days to respond. High Courts have held this prior intimation is a mandatory jurisdictional prerequisite; adjustment without it is invalid.

Practical checklist for the Income Tax Demand Notice in Patna

1. Download the Income Tax Demand Notice in Patna and underlying order from the e-filing portal.
2. Identify the source of the Income Tax Demand Notice in Patna — Section 143(1)(a), 143(3), 144, 147, 154 or penalty.
3. Note the DIN and the date of service on the portal.
4. Calculate the 30-day window from the date of service.
5. Reconcile the outstanding tax demand against your return, Form 26AS, AIS and TIS.
6. Determine whether the Income Tax Demand Notice in Patna is correct, partly correct or a CPC mismatch.
7. Choose the correct demand response option.
8. File the demand response on the e-filing portal within 30 days.
9. If CPC mismatch, file a Section 154 rectification immediately.
10. If substantive addition, file a Form 35 appeal and Section 220(6) stay application.
11. Respond to any Section 245 refund adjustment intimation within 30 days.
12. Preserve all acknowledgments, portal screenshots and challans.

Frequently Asked Questions — Income Tax Demand Notice in Patna