Reply to Demand Notice Under Section 156 — Draft Template

TEMPLATE — REPLY TO NOTICE OF DEMAND UNDER SECTION 156
(Respond via e-Filing; also submit "Disagree with demand" under
Pending Actions → Response to Outstanding Demand, if applicable.)

Name of Assessee   : [Name of Assessee]
PAN                : [ABCDE1234F]
Assessment Year    : [A.Y. 20__-__]
Demand Notice/DIN  : [___] dated [DD/MM/YYYY]
Amount demanded    : ₹[amount] (payable by [DD/MM/YYYY])
Arising from       : Order u/s [143(1)/143(3)/147/154] dated [DD/MM/YYYY]
Response Date      : [DD/MM/YYYY]

To,
The Assessing Officer, [Ward/Circle __] / CPC, Bengaluru,
Income-tax Department.

Subject: Response to notice of demand u/s 156 of ₹[amount] for
         A.Y. [20__-__] — reg.

Respected Sir/Madam,

1.  This is in reference to the notice of demand u/s 156 dated
    [DD/MM/YYYY] raising a demand of ₹[amount] pursuant to the order u/s
    [___] dated [DD/MM/YYYY].

2.  The response of the assessee is as under:

    [OPTION A — Demand disputed / incorrect]
    The demand is not payable/erroneous because [e.g. "TDS credit of
    ₹[amount] per Form 26AS was not allowed", "advance/SA tax of ₹[amount]
    vide challan CIN [___] was not adjusted", "arithmetical error in
    computation"]. A rectification application u/s 154 dated [DD/MM/YYYY]
    has been / is being filed. It is requested that the demand be kept in
    abeyance and rectified to NIL.

    [OPTION B — Demand under appeal]
    An appeal in Form 35 against the order dated [DD/MM/YYYY] has been filed
    on [DD/MM/YYYY] (Appeal No. [___]). The assessee has paid ₹[amount]
    being 20% of the disputed demand vide challan CIN [___] and a stay
    application u/s 220(6) has been filed. Recovery of the balance may be
    stayed pending appeal.

    [OPTION C — Demand accepted / paid]
    The demand of ₹[amount] has been paid in full vide challan CIN [___]
    dated [DD/MM/YYYY]; kindly update the records and close the demand.

3.  It is therefore requested that no coercive recovery action under
    sections 220(2)/226 be taken and the demand be [rectified/stayed/marked
    as paid] as above.

Enclosures: Copy of demand notice & order; Form 26AS/challans;
rectification/appeal/stay proof, as applicable.

Yours faithfully,
For [Name of Assessee]

______________________________
[Signature — Assessee / Authorised Representative]
Name: [Name]   PAN: [ABCDE1234F]
Place: [City]  Date: [DD/MM/YYYY]