ITR filing for assessment year 2022-23: How to deal with an outstanding tax demand

Verified ITR for AY 2022-23 but after processing it shows Outstanding Tax Demand? Here’s what you should do now

income tax return filing last date
Income tax return filing last date for AY 2022-23 was 31 July 2022 for salaried employees and HUFs whose accounts don't need to be audited.

Verified ITR but after processing it shows Outstanding Tax Demand? More than 5.82 crore Income Tax Returns (ITRS) for Assessment Year 2022-23 were filed by 31 July 2022, which was the last date to file ITRs for salaried employees and HUFs whose accounts were not required to be audited. Of these only 3.01 crore verified returns were processed by the Income Tax Department till 31 July. Many times, the return is processed but shows ‘Outstanding tax Demand’.

Here’s what the taxpayers should do after the processed Income Tax Return shows’ Outstanding Tax Demand’

Step 1: Log in to the e-filing portal.
Step 2: Click Pending Actions > Response to Outstanding Demand to view a list of all outstanding demands. If you wish to pay the demand, click ‘Pay Now’ to pay the demand.
Step 3: On the Response to Outstanding Amount page, click ‘Submit Response’ to submit a response to outstanding demand. Depending on the scenario, you can go to the relevant section:

  • If the demand is correct, but you have not paid the tax
  • If the demand is correct and you have already paid the tax
  • If you disagree with the demand (in full or part)

According to Income Tax rules, if the demand is correct then you can submit that the demand is correct. On such selection, you will be taken to the e-Pay tax page, where you can make the tax payment. On successful payment, a success message is displayed along with a Transaction ID.

Also Read: Income Tax Return for AY 2022-23 would become invalid if you don’t do this soon

Also, if the demand is correct and you have already paid the tax, click ‘Add Challan Details’ and add the details of challan, Type of Payment (minor head), Challan Amount, BSR Code, Serial Number, and Date of Payment. Click ‘Attachment’ to upload a copy of the challan (PDF).

Click Save. On successful validation, a success message is displayed along with a Transaction ID.

If you disagree with the demand (in full or part), click ‘Add Reasons’. Select the appropriate reasons for disagreement, and enter the relevant details. Click Confirm to confirm your submission. On successful submission, a success message is displayed along with a Transaction ID.

You should keep a note of the Transaction ID for future reference.

(With inputs from Taxmann)

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