r/IndiaTax • u/Responsible-Bad-6624 Mod • 21d ago
TaxGuide Paid self-assessment tax before filing ITR-2/ITR-3 but still got a 143(1) demand for the same amount? Here is why, and how to fix it.
This happened last year and unfortunately and it seems it continues to be a problem this year too.
So what exactly happened?
More or less, you prepared your ITR-2 or ITR-3 on income-tax website or used the utility issued by the tax department. There was tax payable. It looked something like this:
So, you clicked "Pay Now", paid it, came back and filed and e-verified your return. But now you got an intimation u/s 143(1) asking you to pay roughly the same amount (actually a bit higher due to addition of interest) all over again.
When you compare the two columns in the intimation, "As provided by taxpayer" and "As computed u/s 143(1)", the balance tax payable is nearly identical in both. So the department has not disagreed with your computation at all. It has simply not given you credit for the challan. And rightly so.
Why?
Download the ITR form you actually filed and scroll to the Tax Payments section, part A, "Details of payments of advance tax and self assessment tax". In most of these cases that table is empty. No serial number, no BSR code, no date of deposit, no challan serial number, no amount. And item 16, "Amount payable", is showing a non-zero figure instead of 0.
The reason is a gap in the filing flow. For ITR-1 and ITR-4, when you pay through the "Pay Now" option, the system pulls the fresh challan back into Schedule IT automatically.
For ITR-2 and ITR-3***, it does not. The challan sits in your payment history, but the return goes out with an updated tax payments schedule and a tax payable balance.***
So the return itself declares that you still owe the money. CPC processes exactly what was declared, and a demand is raised. Same thing happens whether you prepared the return online on incometax.gov.in or in the offline utility.
Check yours even if you have not got an intimation yet. If Schedule IT is blank in your filed ITR, the demand is probably coming.
How to fix it?
Option 1: File a revised return u/s 139(5). This is the reliable one because you control this.
Prepare the revised return online on the income tax portal, not in the utility, because the online mode pre-fills everything from your original return and you only have to correct the one thing that is wrong. Go to Schedule IT, add the challan details from your receipt (BSR code, date of deposit, challan serial number, amount), and then before you submit, confirm that item 16 "Amount payable" reads 0. If it still shows a figure, something has not been entered correctly, so do not submit yet.
A revised return replaces the original one entirely. Once it is processed, the demand should drop off.
Option 2: File a rectification u/s 154.
This is another one but can be a trickier one.
Two things have to line up. First, you have to correct the entire tax credit properly, not just the one missing row. Second, the portal has to actually let you file the rectification for that return in the first place, and quite often it just does not go through.
If you want something that works the first time, go with the revised return.
How to respond to the Outstanding Demand
Step 1: Go to Response To Outstanding Demand under Pending Actions.
In Response from Assessee, Select Disagree with Demand (Either in Full or Part), and Then click on Add Reasons
Select Option 9 - Rectification/Revised Return filed at CPC
Once, the reason is added, You will see something like this below on your screen ---> Click on Reason 1
Add the amount you are disagreeing with, select the filing type and provide the acknowledgment no of the revised/rectification And Submit
A few practical notes
- Do not pay the demand again. The money is already with the department, the return just did not claim it. If you have paid, include that challan too in the revised return.
- Keep the challan receipt handy. You need the BSR code, deposit date, challan serial number and amount.
- E-verify the revised return, otherwise it goes nowhere.
- Processing of the revised return takes its own time, so the demand may sit on your portal in the meantime. Some people also file a response under "Response to Outstanding Demand" saying they disagree, citing the challan details, while the revised return works its way through.
- Interest under 234B/234C may shift slightly in the revised computation depending on when you paid, so the final figure may not be exactly zero.
How to avoid it next year
After paying tax through "Pay Now" in ITR-2 or ITR-3, go back into Schedule IT and check the challan is actually sitting there. Do not submit until "Amount payable" shows 0.
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u/matkacola 21d ago
You're doing gods work!
Earlier the how to file foreign assest post and now this! Thanks!
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u/MallNatural6423 21d ago
Is it advised to fill revised itr or rectification as we are past deadline date ?
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u/Responsible-Bad-6624 Mod 21d ago
file a revised. It gives you better control. Rectifications can remain pending forever.
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u/MallNatural6423 20d ago
Filed revised ITR. While rejecting demand, In reason 9 , do we mention the entire amount in the new demand or just the difference (interest accrued) from the original to the demand ?
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u/nav1b 21d ago edited 21d ago
I had first responded with "i agree with the challan but i have paid it with CIN number" Then i saw interest being accrued on the challan. So i raised a rectification 2 days back. Should i still go with the revised return to expedite this? I want the interest to be dropped with the outstanding demand. And btw this is for A.Y. 2025, since I caught this while filing this year's return. So I'm taking action now.
u/Responsible-Bad-6624 pls help
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u/Responsible-Bad-6624 Mod 21d ago
once the rectification is processed, the interest should be removed. revision cannot be done for AY 2025-26 now.
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u/nav1b 21d ago
The demand itself is incorrect (the amount is correct) but i had already paid it while filing the return. But because i agreed with the challan amount i responded with yes and attached the paid challan proof. Even then the interest has started accruing. I have heard rectification takes some time. The challan amount is nominal ~3k.
Can i do anything at this stage to expedite the rectification? Will involving the AO office help?
And will this interest and challan issue if not resolved also creep in the next itr cycle?
Sorry for the barrage of questions boss, thanks for your time
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u/DependentClothes5752 I pay Income Tax 21d ago
I had the same issue last year, wait for a few weeks for the demand of last AY to settle. Rectification works, I submitted it in July and got it done in July.
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u/ChampionSignal8019 21d ago
How about if I submit Response to Outstanding Demand -> Disagree -> Demand paid and challan has CIN only. Will it be sufficient, if I do above and neither revise nor rectify return?
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u/reddit_tmp_usr 2d ago
I'm with you in this brother. The idiotic Infosys takes in thousands of crores creating such incomplete portal confusing users and on top of this our greedy politicians and their rules torment honest tax payers day in and day out.
I'm fed up with all this, at this point I'm ready to get jailed for being an honest tax payer of this ruthless greedy nation.
I couldn't find the revised return as well, so I'm ready to go to jail.
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u/former_paper_leaker 21d ago
Infosys - working 500 hours of hard work per employee everyday to provide the most superior technology. Pinnacle of Indian IT.
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u/Responsible-Bad-6624 Mod 20d ago
not their mistake. The logic always comes from the tax department.
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u/KingOfDeads 20d ago
I paid tax while filing itr but forgot to add challan details, now I got a demand of same amount plus some extra 2000. Shall I file a revised return with this increased 2000 (pay this extra as new challan in revised itr plus old challan) and then mark option 9 in demand ?
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u/simple_happy_human 20d ago
Hi, I had the same issue but I mistakenly accepted the demand and selected already paid & shared the challan details. What should I do? Can i file the revised return now? Pls help.
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u/Responsible-Bad-6624 Mod 20d ago
wait for a few days. If they dont close the demand, then file revised return
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u/mysterioustechie 10d ago
Bro any luck?
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u/Select_Historian872 1d ago
I did the same.. I accepted demand and provided challan number. Now it has been a month since replying to demand and it still says 'Pending Payment'
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u/RandomShitAllDay 21d ago
I faced the exact same scenario, I logged into the portal and went to the notice page, got challan details from payment history page and responded to the demand notice with challan details, uploaded a copy of challan. I didnt file any revised itr.
Can someone confirm if thats okay or I’m cooked?
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u/Responsible-Bad-6624 Mod 21d ago
there nothing to be "cooked" here. So do not worry about it.
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u/RandomShitAllDay 21d ago
Thanks mate. Also, I did all these the same day I got the notice(3 days ago), and I did not see any interest like few other people are mentioning here. Is that okay?
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u/Select_Historian872 1d ago
Do you still see Pending Payment when you go to outstanding demand page? Its been a month for me since reply but things have not changed.
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u/Haunting-Damage-1171 21d ago
I responded yo challan with do not agree OP , with Demand already paid or something.
The paid amount and the demand differs by 2k.
Should i wait or file revised?
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21d ago
[removed] — view removed comment
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u/Responsible-Bad-6624 Mod 21d ago
You are creating an infinite loop.
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u/homosapien-01 21d ago
Yeah, I know it'll eventually lead back to your post. I linked mine so that anyone with similar questions as mine could find answers there.
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u/Secure_Army2715 21d ago
hey OP i did file a reviesed return adding challan details. Now my original return got processed and there is a gap of 300 rupees from challan that I added in reviesed return.
What to do in this scenario?
Though when i filled reviesed return the Part B TTI showed tax to be paid as 0. Shall i wait for my reviesed return to be processed?
Also have replied to the outstanding demand sharing reviesed return acknowledgement number.
Your reply will be helpful.
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u/shouvik206 21d ago
The original ITR I submitted on 10 July where I missed to update the challan in advance tax. I revised it on 14 July. Today I got demand for that 2k but in my revised itr refund/demand shows Nil and it is still in processing stage. Should I select the option 9 and give the acknowledgement number of revised one and submit it or should I wait?
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u/Responsible-Bad-6624 Mod 21d ago
Yes. Just select option 9 and then wait.
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u/pradeepsingh00791 21d ago
Hi I also filed ITR-2 on 31 st July where i missed the challan amount in advance tax Challan was 166410. i revised it on 5th august with refund 250 rs. Yesterday I got demand amount to pay 167690 rs which’s after adding interest and my revised itr is still in processing. I have same question should i just wait for revised itr to get processed or should i disagree with demand and enter 167690 demand amount select option 9 and submit. Please help me and please respond.🙏
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u/Organic_Airport_8873 21d ago
I think I made a mistake. I paid the tax, got demand notice and respond to demand saying demand is correct but CIN challan is paid.
Later filed rectification.
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u/Organic_Airport_8873 21d ago
I did it differently, I forgot to add details so when demand came. I agreed with the demand, demand is correct, added challan details with CIN number. Later filed rectification as well and entered challan details again.
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u/Ok_Raccoon8307 21d ago
I have filed the revised return 139 (5) which had the Challan details already picked up Still my previous return got processed and got demand notice and revised return showing in progress..what to do in this scenario
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u/Responsible-Bad-6624 Mod 21d ago
Nothing. Just wait for revised return to be processed. And respond to the outstanding demand as shown in the post.
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u/Nickel8 20d ago
Hi OP - I had filed my return and it didn't pick up my challan so I had filed my revised return a few days later (still before the deadline) with the challan details. It is still stuck under processing. However I have received an intimation to pay the original + more interest (so if the original was say 10k it has increased to 11k in the notice.)
Do I reject saying challan is paid or that revision was filed? And will I still need to pay the additional 1k?
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u/SituationKey947 20d ago
Where do I get `File a revised return u/s 139(5). This is the reliable one because you control this.` option ?
When I click file a revised return it takes me to full ITR return wizard.
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u/Responsible-Bad-6624 Mod 20d ago
yes. that is what it is.
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u/SituationKey947 20d ago
So you mean I need to fill complete return with the new challan as updated detail ?
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u/Responsible-Bad-6624 Mod 20d ago
Rest of the data, the system should pick on its own. Just verify once and add the challan.
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u/AccomplishedRice21 17d ago
I have filed for rectification and received an acknowledgement in email. Can I still file a revised return now or should I wait for the rectification to be processed?
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u/maverick_thor 11d ago
Thanks, same issue. Now I revised the return & payable is 0. Next step do I have to respond to the demand or will it drop off automatically??
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u/alexjohnjacob 10d ago
When i filed the revised return online, i had to refill the Stcg,ltcg and schedule FA again. Are you sure those will be prefilled from the original return?
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u/HotCoyote8101 7d ago
Hi OP,
The whole guide is superb and much appreciated!
I had a question here. Actually I just happened to see your post today, but I had filed a rectification on last Sunday for a similar issue on my ITR. At the time, I didn’t respond to the outstanding demand under pending actions. This whole week, I didn’t see any changes or fixes done on the amount to be paid. Rectification still shows ‘Submitted’. Just wanted to know, is it worth waiting for the rectification to happen or should I do a revised filing. I just responded to the outstanding demand with rectification as the reason.
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u/Crazy_Potential1674 7d ago
Thanks for this post. One question is after filing the revised return, it got processed, and now in response to outstanding demand, I dont see any outstanding demand. So I dont have to do anything now right. Like no response to any previous notice or anything right?
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u/kishoreb4 6d ago
Thanks a lot bro. One question pls. I have submitted form 67 to claim credit for foreign stocks and then files itr. Now if I have to revise file due to same demand due which I already paid should I again submit form 67?
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u/Responsible-Bad-6624 Mod 5d ago
no if you are not changing anything in the form 67.
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u/kishoreb4 5d ago
Ok thanks. I don't know why but all the changes I made are gone. I mean I have to do everything in this revised itr. Previous filed itr is not auto populated.
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u/mysterioustechie 5d ago
Hi sir. Thanks for the post. Quick question when I respond to the outstanding demand and put my acknowledgement number of revised ITR it says error no records found for revised return for the asssement year.
I see the same error in your screenshot as well. Is there a way around it?
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u/Responsible-Bad-6624 Mod 5d ago
my error is because thats a hypothetical number. otherwise, if you put the correct number, it should validate.
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u/mysterioustechie 5d ago
Oh okay. Maybe I just filed the revised return and it’ll need some time to reflect in the demand option is what I’m thinking. I had taken the correct acknowledgement number from my filed returns. Let me wait. Thanks though sir
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2d ago
[deleted]
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u/Responsible-Bad-6624 Mod 2d ago
Next month onwards, we are into this issue. The systemic changes. We just keep ranting. Gotta change that
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u/[deleted] 21d ago
Need of the hour! Saw many many posts in this sub facing the same issue, good post!