Tax Demand Notice — Section 156
Verifying, contesting and managing outstanding income-tax demands
- 1VerifyEach demand traced to its order and payments.
- 2RespondAgree, disagree or mark as paid online.
- 3ProtectStay or rectification filed as appropriate.
Share your details. We’ll reply on WhatsApp with the next steps and a checklist.
Pick a plan — the fee is adjusted if you hire us within 30 days.
About Tax Demand Notice — Section 156
A clear overview, in simple terms — what it is, why it matters, and how we handle it.
A notice of demand under Section 156 asks you to pay the tax, interest or penalty arising from an assessment or intimation, usually within 30 days. If you don't pay or get a stay, interest under Section 220(2) runs at 1% a month and the demand can be recovered or adjusted against your refunds. If the demand is wrong, respond to it as 'disagree' with reasons on the portal and pursue rectification or appeal; a stay pending appeal is commonly granted on paying a portion — often 20% — of the disputed demand.
Many outstanding demands on the portal are old, duplicated or already paid. The first step is to verify each one against challans and orders; the portal's 'Response to Outstanding Demand' lets you mark it as already paid, wrong or under appeal.
If you have appealed, apply for a stay so that recovery and refund adjustment stop while the appeal is pending. We also object when the department proposes to adjust a refund against a disputed demand.
| Payment period | Usually 30 days from service of the notice |
|---|---|
| Interest on delay | 1% per month (Section 220(2)) |
| Refund adjustment | Refunds can be set off against outstanding demand with prior intimation |
| Stay pending appeal | Commonly on payment of about 20% of disputed demand |
Who this is for
Common scenarios where this service is a good fit.
- Taxpayers with outstanding demands on the portal
- Taxpayers whose refunds are being adjusted
- Appellants needing a stay of demand
What you get
Clear deliverables so you know exactly what's included.
- Demand verification against challans and orders
- Online response to outstanding demand
- Stay application
- Rectification or appeal filing
Expert review before every submission — not just data entry.
Working notes and reconciliations you can rely on in future notices.
Resident Indians, NRIs, expats and cross-border businesses — all served.
Documents required
A practical checklist. We'll tell you if anything else is needed based on your case.
* This is a base checklist. After a quick pre-check, we may ask for additional items specific to your case.
Process
A simple, trackable workflow — designed to avoid back-and-forth.
Each demand traced to its order and payments.
Agree, disagree or mark as paid online.
Stay or rectification filed as appropriate.
Get a quote
We share a clear quote on WhatsApp after a quick checklist pre-check.
- Fixed quote on WhatsApp after a short look at your facts and documents.
- Government fees, if any, are paid at actuals and shown separately.
| Factor | DIY | Indus Tax |
|---|---|---|
| Expert review | ❌ | ✅ |
| Notice risk reduction | ❌ | ✅ |
| Deduction optimisation | ❌ | ✅ |
| Audit-ready records | ❌ | ✅ |
| AIS/26AS reconciliation | ❌ | ✅ |
Share your facts and deadline. We'll reply with the right checklist and a clear quote.
Fee adjusted against our service fee if you go ahead within 30 days.
- Priority CA Call-backSkip the queue — a CA calls you within 30 minutes.₹255
- RecommendedCA Consultation (30 min)Talk one matter through properly with a CA.₹755
- In-depth CA Review (60 min)Documents reviewed before the call, written action plan after.₹1,155
Call-backs run Mon–Sat, 9 AM–6 PM IST. Booked outside these hours? We call you first thing the next working morning.
Compare the 3 plansFrequently asked questions
Answers to the most common questions we get.
This page also covers
- Tax demand
- Verifying and contesting outstanding demands.
Official sources
Indus Tax is a private professional services firm and is not affiliated with any government authority. Rules and fees change — we confirm current positions before filing.
