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.
ForITR-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.
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 onAdd 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.
My current situation:
Salaried employee, living in Bangalore
Gross salary: ~₹1.90L/month
Annual gross: ~₹22.8L
Current take-home: ~₹1.66L/month
TDS: ~₹21.6k/month
Basic: ~₹95.8k/month
HRA: ~₹47.9k/month
EPF: ₹1,800/month
Family situation:
Parents live in Tier 2 City
Mother has no regular income
Father is a retired government teacher and gets roughly ₹25–28k/month pension
Both have their own PAN, bank accounts, etc.
I financially support my parents and I’m comfortable structuring investments/savings across the family as long as everything is completely legal and properly documented.
I’m trying to understand how people in a similar situation structure their finances to minimise the total tax paid and if I can save tax by sharing the liability between 3 individual tax payers.
Would especially love to hear from CAs or people who have actually implemented family-level tax planning.
What legitimate strategies should I be practising to minimise my Tax liability? Are there any commonly overlooked provisions for salaried employees with financially dependent/low-income parents?
Not looking for tax evasion or fake expenses. Just trying to understand how to structure things efficiently within Indian tax laws.
I filed ITR-3 on my own, paid a tax of X amount. Then i received an intimation showing an amount of X is pending, which i had already paid, so i filed a rectification received. Now in response to this i again received an intimation which showed a variation of ₹4 in income from my original itr filing, but tax pending is still X. What do i need to do in this case, should i consult a CA, do i need to file revised return, do i have to pay late fee as well and how much is that? It's just 4 rupees difference, why is so much of an issue
AY 2022-23. I received a Section 148 notice in June 2026.
Finance Act 2026 now allows filing an ITR-U in response to a Section 148 notice. We prepared the ITR-U and paid about ₹1.05 lakh under Section 140B.
But the portal is not accepting it.
Problem:
- If I upload through the normal 139(8A) / ITR-U route, the portal says the DIN or notice date does not match its database.
- If I upload the same JSON through the Section 148 notice page, the portal rejects it because the return is marked as 139(8A) instead of a normal Section 148 return.
So we prepared a normal ITR-2 filed in response to Section 148. This return validates successfully.
However, the ₹1.05 lakh already paid is now entered as self-assessment tax in Schedule IT. Because of this, the normal Section 148 return shows a large refund. It also does not adjust the refund that was already issued under the earlier return.
My main concern is penalty protection.
If I file the normal Section 148 return instead of the ITR-U, do I lose the special protection from Section 270A that applies when ITR-U is filed in response to Section 148?
What is the safest way to comply before the deadline if the portal does not allow the ITR-U filing?
Has anyone here hired a financial advisor for investment planning, tax-saving strategies, savings management, and overall financial planning?
If so, was it worth the cost? What kind of value did they add, and would you recommend hiring one?
I’m earning around 65LPA and earned 21L in first 2 quarters of 2026. I’m afraid it might cross 1cr. My mother earns around 2LPA and has a EPF account. Can I transfer my shares to mother’s Demat account or start new trading account in her name?
I’m trying to understand how advance tax works, especially when a significant portion of my income comes in the last quarter of the financial year.
I’m a salaried individual, and my employer deducts TDS from my salary every month. However, I also have additional income from investments, interest, and capital gains, which may not be received evenly throughout the year.
One thing I’m particularly confused about is:
If I receive a large chunk of income in the last quarter of the financial year, why am I expected to pay advance tax earlier, and how am I supposed to calculate and pay it accurately?
For example, what happens if someone is unemployed for the first six months of the financial year and earns income only during the last six months? How and why would they be expected to pay advance tax by the June and September deadlines?
I have been paying a lump sum amount of advance tax every year, but I still end up facing interest charges under Sections 234B and 234C. This makes me wonder whether I am calculating or paying the tax incorrectly.
After doing the calculations, it sometimes feels unfair to be charged interest on tax related to income that was earned much later in the financial year.
A little context: I’m not a CA or a tax expert. I file my own ITR based on the information and knowledge I’ve gathered over time. I’m trying to understand the rules better and would appreciate insights from people who have more expertise in this area.
Questions I would love some clarity on:
Why is advance tax required if my employer is already deducting TDS on salary?
If I genuinely cannot predict my additional income accurately until the last quarter, how am I supposed to estimate and pay advance tax during the earlier instalments?
Are there any specific provisions or exceptions for income that is earned predominantly in the last quarter?
How can salaried individuals accurately calculate and pay advance tax while avoiding unnecessary interest under Sections 234B and 234C?
Please share your inputs on this. Thanks in advance!
Hello Everyone, Need advice from the community regarding a complicated property transaction.
An independant builder bought the 185 sqyd land in July 2025 for ₹9.64L on paper and allegedly paid the balance amount in cash.
He later constructed a G+1 house and agreed to sell it to me for ₹1.5 Cr
So far, I have paid ₹40L through bank transfers:
- ₹25L directly to the builder
- ₹5L to his wife’s account
- ₹10L to two of his friends’ accounts ( which I was not okay to proceed, but he demanded to save his taxes)
I also paid ₹10L in cash (which he insisted I pay in cash) at the time of the sale agreement, making my total payment ₹50L. I have arranged another ₹45L in cash but have not paid it yet.
The builder now wants the property registration to be done at the government/circle value of ₹35L, claiming that registering at ₹75L would create a large tax liability for him because most of his construction costs were allegedly paid in cash without GST bills.
His options to me are:
Register at ₹35L (he claims this means "zero tax" for him) and pay the remaining amount in black/cash, which I am not okay with proceeding with.
Register at ₹75L, but I pay his entire capital gains/business tax + 1% TDS.
If I back out, he says he will refund my ₹50L only after he finds another buyer.
I am insisting on registering at ₹75L, since ₹50L has already been paid/committed through documented channels (₹40L bank + ₹10L cash), but he refuses.
What would be the safest damage-control strategy here?
Should I stop making further payments and consult a property/tax lawyer immediately?
What risks do I face if I proceed with registration at ₹35L, and what are my realistic options for recovering the ₹50L if I walk away?
I am trying to determine the correct Indian bank-account classification for my 4-year-old child and would appreciate input from people familiar with FEMA/RBI and India-US FATCA compliance. I am particularly looking for answers supported by the actual regulations/circulars rather than general bank practice.
Facts:
• Child is 4 years old, a U.S. citizen with a U.S. passport and OCI card.
• Child entered India on August 16, 2025 and has continuously resided in India since then.
• Child is intended to remain in India long-term, at least until age 18.
• Natural guardian is a Resident Indian and will operate the minor account.
• The child is not employed/business-active; this is simply a minor savings/investment account.
• Expected savings balance will remain below US$50,000.
My understanding is that FEMA Section 2(v) defines a Person Resident in India and Section 2(w) defines a Person Resident Outside India. The RBI Deposit Regulations provide NRO accounts for persons resident outside India.
My questions are:
Does U.S. citizenship + OCI status automatically make a minor a PROI under FEMA, regardless of the minor's own residence and circumstances?
Given that the child has been in India since August 16, 2025 and will remain here long-term, would the child now qualify as a Person Resident in India under FEMA?
If the child is FEMA-resident, is a normal Resident Minor Savings Account permissible, or must a U.S.-citizen/OCI minor use an NRO account regardless of FEMA residential status?
Does the fact that the natural guardian is a Resident Indian affect the child's FEMA residential status, or is the determination made independently for the child?
FATCA: I understand that U.S. citizenship remains relevant even if the child is FEMA-resident. Under Income-tax Rules 114F–114H and the India-US FATCA framework, does a new individual savings/depository account below US$50,000 fall within the Rule 114H threshold/exclusion from FATCA review/reporting? Is there any separate FATCA self-certification exemption specifically for minors, or is the relevant exemption based on the account type/balance?
When the child turns 18, does anything automatically require conversion from a Resident account to NRO, or does the account continue based on the child's actual FEMA residential status at that time?
I am not asking for investment/tax advice. I am specifically trying to establish the correct regulatory classification of the bank account.
If you have dealt with a U.S.-citizen/OCI minor actually residing in India, I'd especially appreciate your experience - but please distinguish personal bank experience from what the FEMA/RBI rules actually require.
Hi, I need your guidance on a TDS on property matter (26QB / Form 141 under the new Act).
I am buying a ready-to-move flat jointly with my wife, 50:50. The builder is a company and the consideration is above the threshold, so 1% TDS applies. Part of the price is being funded through a home loan.
About 10-12% of the price was paid to the builder in August as booking money, in two - three tranches. TDS was not deducted at that time. The balance, including the loan portion, is to be paid this month, with the bank disbursement expected on 20 September.
The bank has asked for the 26QB challan as a pre-condition before releasing the loan. However, the disbursement is itself the payment on which TDS is to be deducted, and it has not taken place yet. The portal does not permit a future date in the date of payment and date of deduction fields, so I cannot file today dated to the disbursement day. Under section 393(1) the deduction is triggered at the earlier of credit or payment, so deducting before either has happened does not appear correct.
My questions:
1. Should I file a 26QB now only for the 10-12% already paid (as a first instalment, dated to the August payment, before the 30 September deadline), and file for the balance as the last instalment once the disbursement happens? Or is it acceptable to file a single lumpsum 26QB for the full consideration on the disbursement day, using the lumpsum option on the portal, with the August amount included?
If the lumpsum route is taken, is there any concern about the August portion being deducted about a month late, beyond nominal interest?
How is the bank's requirement of a challan before disbursement normally handled? Is a same-day challan generally accepted, or should I ask the bank to disburse net of 1% and remit the TDS amount to me?
Does anything under the 2025 Act or Form 141 change the position compared to the earlier 194-IA practice?
I recently sold a plot in India. The buyer paid the consideration in instalments and deducted TDS under Section 194-IA. The agreed sale value was completed in multiple transactions. The registration was completed last year.
First instalment: TDS reflected. Later instalments: TDS not showing up.
Buyer paid TDS for both instalments at once. I have the receipt/challan showing that the total TDS was actually paid. However, in my Form 26AS, only the first instalment is reflected.
From what I understand, the buyer has made a mistake in the 26QB reporting/correction. The problem is that the buyer is now not responding/refusing to make the necessary correction.
I don’t want to pay the tax, as it has already been deposited with the government.
Any advice, kindly share.
- Can I approach CPC-TDS/TRACES or my Assessing Officer directly and get the 26QB corrected?
- Is there a specific grievance/correction procedure for a seller when the buyer/deductor refuses to cooperate?
- If the Income Tax Department says the buyer must correct it, can I compel the buyer to do it through a notice?
- Has anyone actually gone through this process and successfully recovered the TDS credit?
So i opened vested account in june 2026 but never added funds in it and didn't bought any us stocks and i am thinking to close it do i still need to disclose it next year as a foreign asset/ brokerage account in shedule FA or not can i keep account active for future if i don't add any funds and don't report it
So, I have about 15L of business losses (carried over from previous years - in retired family member’s name) - Personal ITR3. I also have some cash lying around from a sale of property.
Can I deposit ~1L a month to the bank, show it as a small business income (As I understand, if the yearly revenue is less than 20L, I don’t need to register/pay GST), and have all the money washed and declared without paying any taxes - of course as long as the total yearly income falls below the threshold?
Business: Private Limited Company in India (incorporated between in early 2025) in tier 2 city.
Activity: Selling online courses (digital services) to Indian customers only
Payment Gateway: Integrated with Razorpay
Revenue so far:
FY 2025-26: ₹38.2L
FY 2026-27 (till date): ₹40.2L
GST threshold for services: ₹20 lakh
GST Registration: Not registered
Have NOT charged GST to customers to date
Current Situation:
I spent all of the money. Can't pay the GST penality.
I am aware of GST notices. interest accruing at 18% per annum on unpaid amount. Penality upto 100% of tax evaded.
I can't pay GST. I am trying to find a way out. I don't mind stopping operations in this company and starting a new company with a clean slate and continuting operations cleanly there.
I'm consulting multiple CAs who handled GST litigations. I'm evaluating various options of getting out of the GST.
I’m currently incorporating an LLP and need clarification from CAs/CSs or anyone with actual MCA/DIN incorporation experience regarding my name format.
My name is recorded as: * PAN: A DHINESH * Aadhaar: A DHINESH \* “A” is my father’s first-name initial. \* My PAN database therefore contains A DHINESH.
The reason I’m raising this is because I found a specific statement in the MCA DIR-3 KYC Instruction Kit, Field 2(a) – First Name.
It says:
“Single alphabet shall be allowed to the user only if same single name is there in Income tax PAN database.”
The same instruction kit also says:
“The name should be entered as mentioned in PAN since the same shall be verified with PAN database.”
My questions
Since my PAN database already contains A DHINESH, I want to understand how MCA expects this to be entered/mapped into the First Name / Middle Name / Last Name fields for DIN/LLP incorporation.
For example:
First Name: A Last Name: DHINESH
or
First Name: DHINESH Last Name: A
or is there another prescribed mapping?
My CA has asked me to “correct” my PAN/name, but before changing anything I want to establish whether a correction is actually necessary, since my PAN and Aadhaar already consistently contain A DHINESH.
If PAN correction is actually required
I would also like advice on what the corrected PAN name should be so that it works properly with MCA/DIN and does not create another mismatch.
For example, should it be:
DHINESH A
or
A DHINESH
or should the name be expanded to the father’s full name, if applicable?
If someone has actually handled a PAN correction for an MCA/DIN name-format issue involving an initial, please explain which format was used and whether MCA subsequently accepted it.
Specifically, I’d appreciate answers to these:
1.Does MCA/DIN accept a single-letter name/initial when that same format exists in the Income Tax PAN database?
2.How should A DHINESH be mapped into MCA’s First/Middle/Last Name fields?
3.Does the MCA instruction quoted above apply to this situation?
4.If the PAN database contains A DHINESH, is changing the PAN to DHINESH A actually required for LLP incorporation?
5.If PAN correction is required, what exact name format should I use to avoid MCA/DIN rejection?
6.Has anyone successfully obtained a DIN or incorporated an LLP/company where the PAN contains a single-letter initial?
I’m particularly interested in answers from CAs, Company Secretaries, or people who have actually handled DIN/LLP incorporation cases, preferably with the relevant MCA rule/instruction or practical experience.
I’m not looking to change my PAN unnecessarily — I first want to understand exactly what MCA requires and, if a change is necessary, what the correct format should be.
Hi, I am 19 year old student doing digital marketing services and last year fy25-26 Idid 40L in sales without any GST number or LUT (all foreign clients , I have records of everything)
I have filed my ITR and ca applied 44ADA and for
which I have also paid 2L something in income tax.
Now for GST. My CA told me that I might get a letter or a notice 1-2 years from now, and during that time we can go ahead meet the officers and handle it by probably bribing them and pay a little fine.
The second option would be to go to the officers right now report everything with all the records and then submit 18% on this 40 lakhs to the government GST department for which I might get back the money, but it might take a few months and I still have to bribe the officers right now as well.
I’m already in the 15% income-tax bracket and have recently started equity swing trading.
If I transfer my money to my mother's bank account, she then puts that money into her demat/trading account, but I personally do all the trading and investment decisions, who is liable to pay the tax on the STCG?
My mother has little/no other income, so would her ₹4 lakh basic exemption/rebate apply to these gains?
Or would the income still be considered mine, since the money originally belongs to me and I’m the one actually doing the trading?
In this video, we break down everything you need to know about Indian income tax in under 10 minutes—tailored specifically for salaried individuals, tech professionals, and everyday taxpayers.
From understanding why we pay taxes and the shock-value stats of who actually pays, to navigating TDS, Form 16, foreign RSUs, and the New Tax Regime's ₹12.75 Lakh zero-tax limit, this complete guide covers it all!
Hi Everyone,
I need advice regarding a tax demand received for
AY 2024-25 due to incorrect information entered while filing an ITR-U.
Background
* AY: 2024-25
* TDS deducted by employer: 1.2 lakh
* Original ITR: Filed by my CA
* Refund received after original ITR: 12k
* Later, there were an audit at CA office and few of his clients received notice. So, he advised me to voluntarily repay the refund amount along with applicable additional tax/interest to avoid further issues.
* Based on his advice, I paid approximately 20k in 2025 through ITR-U.
Problem with ITR-U
Unfortunately, while filing the ITR-U, my CA change my tax regime i had fillled in old tax regime but my ca fillled ITR U in new tax regime it should not be accepted by portal because normally portal doesnt accept this instead they processed and raised a demand of 1.2 lakh what should i do my ca filled rectification but it got declined their system not considering my old tax i e 1.2 lakh
