Income tax · Notice
Notice of demand (Section 156)
Tax, interest, penalty, fine or another sum is payable in consequence of an order under the Act, and the Assessing Officer serves a notice of demand specifying the sum. What to do: match the demand to the order it follows, then respond under Response to Outstanding Demand. Time to act: 30 days from the date of the notice; the date stated on your notice always wins.
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Key facts
Tax, interest, penalty, fine or another sum is payable in consequence of an order under the Act, and the Assessing Officer serves a notice of demand specifying the sum. The portal lists it under Pending Actions > Response to Outstanding Demand.
| Notice | Notice of demand (Section 156) |
|---|---|
| Issued by | The Income Tax Department (the authority named on the notice) |
| Issued under | Section 156(1) r/w Section 220, Income-tax Act 1961 |
| Income-tax Act 2025 | Section 289(1) r/w Section 411, Income-tax Act 2025 |
| What it asks of you | Match the demand to the order it follows |
| Your time to act | 30 days from the date of the notice; the date stated on your notice always wins. |
| If it is ignored | If the sum is not paid within the period, simple interest runs at 1% for every month or part of a month from the day after it ends until payment (Section 220(2)); interest is reduced if the demand is reduced in appeal or rectification. |
Time allowed
Action: 30 days from the date of the notice. The Act counts the 30 days from service of the notice (Section 220(1)); the date on the notice is used here. A shorter period is possible only with the Joint Commissioner's prior approval.
The date stated on your notice always wins.
More time: On an application made before the 30 days end, the Assessing Officer may extend the time or allow instalments (Section 220(3)). Where an appeal is filed, the officer may in his discretion treat you as not in default for the disputed amount while it is pending (Section 220(6)).
What to do now
Match the demand to the order it follows
The demand follows an order (assessment, reassessment, penalty, rectification). Check the sum against that order and against tax already paid.
Respond under Response to Outstanding Demand
Choose "Demand is correct" (then Pay Now, or give the challan details if already paid) or "Disagree with demand (in full or in part)" with the reasons, paying any undisputed part. The portal warns that once you submit "Demand is correct" you cannot disagree later.
Pay within the period, or apply for time or a stay
Pay through e-Pay Tax, or apply under Section 220(3) before the 30 days end. If you are appealing, ask the Assessing Officer to treat you as not in default for the disputed amount (Section 220(6)); the conditions are at the officer's discretion, and any percentage practice is to be confirmed with our expert team.
Diarise the appeal date
An appeal against the assessment or penalty runs 30 days from service of this notice of demand (Section 249(2)(b)); see the date below.
Check the Document Identification Number (DIN)
Every notice, order or letter should be referenced by a computer-generated DIN, in its body, in a covering document or in the covering e-mail (CBDT Circular 4/2026, which withdrew Circular 19/2019). A missing DIN is a point to raise with our expert team; by itself it does not invalidate an assessment that is referenced by a DIN in any manner (Section 292BA).
What a written response contains
A written response usually covers the points below. This is an outline, not a draft: our expert team writes it on your own records.
- Reference: the notice's reference number and date, your PAN and the period it covers.
- An answer to each point the notice raises, in the same order, saying what you accept and what you dispute.
- Evidence for each point: the returns, books and documents each answer relies on.
- Where it is filed: as stated on the notice.
If it is ignored
- If the sum is not paid within the period, simple interest runs at 1% for every month or part of a month from the day after it ends until payment (Section 220(2)); interest is reduced if the demand is reduced in appeal or rectification.
- After the original or extended time you are deemed to be in default (Section 220(4)); default in one instalment makes the whole balance due (Section 220(5)).
- A waiver of the interest may be sought from the Commissioner for genuine hardship where the default was beyond your control and you co-operated (Section 220(2A)).
Other dates that follow from it
- Appeal to the JCIT(A) / CIT(A) (Section 249(2))30 days from service of the notice of demand (assessment or penalty) or of the order. A late appeal may be admitted for sufficient cause (Section 249(3)); the tax due on the returned income must have been paid first (Section 249(4)). Counted here from the date on the notice.
Official sources
Sources checked on 22 October 2026.
- Income-tax Act 1961, section 156 · read 22 October 2026
- Income-tax Act 1961, section 220 · read 22 October 2026
- Income-tax Act 1961, section 249 · read 22 October 2026
- e-filing portal help: response to outstanding demand · read 22 October 2026
Frequently asked questions
What is an income-tax Section 156 notice?
Tax, interest, penalty, fine or another sum is payable in consequence of an order under the Act, and the Assessing Officer serves a notice of demand specifying the sum. The portal lists it under Pending Actions > Response to Outstanding Demand.
How much time do I have to act on an income-tax Section 156 notice?
Action: 30 days from the date of the notice. The Act counts the 30 days from service of the notice (Section 220(1)); the date on the notice is used here. A shorter period is possible only with the Joint Commissioner's prior approval. The date stated on your notice always wins. On an application made before the 30 days end, the Assessing Officer may extend the time or allow instalments (Section 220(3)). Where an appeal is filed, the officer may in his discretion treat you as not in default for the disputed amount while it is pending (Section 220(6)).
What happens if I ignore an income-tax Section 156 notice?
If the sum is not paid within the period, simple interest runs at 1% for every month or part of a month from the day after it ends until payment (Section 220(2)); interest is reduced if the demand is reduced in appeal or rectification. After the original or extended time you are deemed to be in default (Section 220(4)); default in one instalment makes the whole balance due (Section 220(5)). A waiver of the interest may be sought from the Commissioner for genuine hardship where the default was beyond your control and you co-operated (Section 220(2A)).
Related guides
General information from the provisions this notice is issued under, not legal advice. The dates and periods stated on your notice always win. Our expert team can read the full notice with you.