Tax Demand Notice · Panaji, Goa
Received a tax demand notice? Our Chartered Accountants in Goa verify every Section 156 demand notice — checking for incorrect computation, already-paid amounts, and disputable additions — and take the right legal action: rectification, appeal or stay, before the 30-day payment deadline expires.
Overview
A Section 156 notice of demand is issued after any assessment or reassessment order that results in a tax liability — from a routine intimation under 143(1) to a full scrutiny assessment under 143(3) or best judgment assessment under 144. You are given 30 days to pay the demand. But before paying, it is essential to verify whether the demand is correctly computed, whether it includes TDS already credited, and whether the underlying assessment is disputable. Paying an incorrect demand without contesting it can waive your right to recovery of the excess.
This service works closely with our Section 143(1)(a) notice response and Section 245 refund adjustment services for complete income tax compliance and notice management.
What's covered
End-to-end notice management from receipt to resolution.
Get a fixed-fee quote →Cross-checking the demand against the assessment order, TDS credits, advance tax paid and self-assessment tax to confirm the correct outstanding amount.
Filing a Section 154 rectification if the demand arises from an apparent error — wrong TDS credit, double addition, or arithmetic mistake.
Filing an appeal before CIT(A) if the underlying assessment order is disputable and the demand flows from incorrect additions.
Applying for a stay of recovery pending appeal so you are not coerced into paying a disputed demand before your appeal is decided.
Advising on instalment arrangements with the AO for genuine tax dues where payment in one shot is not feasible.
Identifying and clearing old outstanding demands appearing on the portal that may have been paid but not reconciled.
Our process
We check the demand against your tax computation and payment records.
Rectification, appeal, stay or payment — we advise the right course.
We file the rectification or appeal and apply for stay within 30 days.
We track resolution on the portal until the demand is settled or stayed.
Frequently asked questions
A Section 156 notice of demand is issued by the Income Tax Department to communicate the amount of tax, interest, penalty or other sum payable following an assessment, reassessment or other order. It specifies the sum due and requires payment within 30 days. It is not itself an assessment order — it is the formal demand that follows one.
You must pay within 30 days of receiving the notice. If the demand is not paid and no stay is obtained, the department can initiate recovery proceedings under Section 220 — including attachment of bank accounts, property and salary — and charge interest under Section 220(2) at 1% per month on the outstanding amount.
Not necessarily. Before paying, always verify: whether the demand matches the assessment order; whether TDS, advance tax and self-assessment tax are correctly credited; whether the underlying assessment is correct; and whether the demand is one you wish to dispute. Paying without verification may limit your ability to recover the excess later.
Yes, demands are frequently incorrect. Common errors include: TDS credits appearing in Form 26AS not being allowed in the assessment; arithmetic mistakes in the assessment order; the same income being added twice; demands that were already paid not being updated on the portal; and demands arising from processing errors in the CPC. We check all of these.
If you file an appeal against the assessment that raised the demand, you can simultaneously apply to the AO for a stay of the demand pending disposal of the appeal. Typically, you deposit 20% of the disputed demand and the AO stays recovery of the balance. This protects you from coercive recovery while your appeal is pending.
If the demand is ignored and no stay is granted, the department can: issue a notice under Section 221 for failure to pay; levy a penalty under Section 221(1) up to the amount of the demand; attach bank accounts or property under Section 226; and recover dues from debtors of the taxpayer. Early action is critical — do not ignore a Section 156 notice.
Yes. Many old demands shown as outstanding on the income tax portal have actually been paid but not updated or reconciled. We trace the payment history, obtain proof and file a rectification or grievance to get the demand marked as paid or deleted. Clearing old demands also removes them from being adjusted against future refunds under Section 245.
Contact N D Savla & Associates in Panaji, Goa as soon as the demand notice is received. We verify the demand computation, identify errors, file rectification or appeal where appropriate, apply for a stay of recovery, and ensure you do not pay a rupee more than what is correctly due — or face coercive recovery on a sum you have contested.
Related services
Book a free consultation with a qualified Chartered Accountant in Goa. We'll verify your demand and take the right legal action — no obligation.