Tax Demand is raised on a Tax Payer by the IT Department. This happens when as per the IT Department's assessment of a TAX Payer's return , there exists a difference between the total Tax paid by the Tax Payer and Tax Payable as determined By The IT Department. Nowadays The Central Processing Unit of the IT Department is fully automated to identify , generate and dispatch Tax Demand Notices to concerned Tax Payers. Income Tax Demands are raised by the IT Department for various reasons like,

• A mismatch between the TDS amount as reflected in the 26AS statement of the Tax Payer and TDS claimed in the ITR return filed by him.
• Erroneous calculation of Interest payable on unpaid Tax Liability by the Tax Payer.
• Erroneous filing of Challan details pertaining to Advance & Self Assessment Tax in the IT Form
• Erroneous calculation of Tax Liability.
• Technical errors owing to mistaken feeding of wrong data By The IT department into the software enabled IT Computer systems. This is particularly true in the cases of those Tax payers who have filed their Tax Return manually.
• A wrong mention of The Assessment year in the Tax Challan while carrying out the Advance and Self Assessment Tax payment.
• A wrong Selection of the Tax Payment Head under which the Tax is paid.

The above list is not exhaustive in nature and a Faq'semand notice may be issued by the IT Department on the basis of their evaluation . In case of a client issued with a Tax Demand notice who approaches Wealth4India Tax Experts seeking to engage our services to deal with the issue we identify the genuineness of the Demand's nature , and follow it up with suitable remedial action with the CPC/ Jurisdictional Officer.