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Section 156 Demand Notice
Income Tax · Demand notice

Tax demand notice:check it before you pay.

A section 156 demand notice asks you to pay tax, interest or penalty, usually within 30 days. Many demands are wrong or out of date: TDS not credited, an error in processing, or a demand already paid. We check every demand, then pay, rectify, appeal or seek a stay, whichever fits.

Check my demand
Every demand verifiedFees agreed in writingStay applications
Pay withinUsually 30 days
Interest1% a month if late
If wrongRectify or appeal
StayOften 20% of disputed demand

Check the demand first.

  • Is it genuine?Verify on the e-filing portal.
  • Is TDS credited?Missing TDS credit is a common cause of wrong demands.
  • Was it already paid?Challans not matched to the demand.
  • Is the order right?Errors in processing or assessment.
  • Interest correct?Interest worked out on the right amount and dates.
  • Year and PANDemand for the right person and year.
Old and new section numbers

From 1 April 2026 the Income-tax Act, 2025 has renumbered these provisions. Notices for tax years before 2026-27 still refer to the Income-tax Act, 1961 sections, which is why this page uses them. We check which Act applies to your notice.

Your options.

SituationWhat to do
Demand is correctPay within the time allowed, from India or the UK
Demand is due to an obvious mistakeDisagree on the portal and request rectification
Demand comes from an order you disputeAppeal and apply for a stay of demand
Refund is being held against itReply to the refund adjustment notice. See Section 245 Notice

Stay of demand.

If you appeal, you can ask the officer not to recover the demand until the appeal is decided. Under standard guidelines, a stay is usually granted if around 20% of the disputed demand is paid, though more or less can be asked for in some cases. See Appeal to Commissioner of IT.

Why clients trust us with notices.

Every notice read in full

We read the notice, the AIS and your return together before advising.

Replies on time

Deadlines tracked from the day you send us the notice.

Plain-English explanation

What the notice means, what is at stake and what we recommend.

Faceless and online

Most proceedings are handled online, so you never need to travel to India.

Chartered Accountants

Replies and representation by Chartered Accountants.

Fees agreed in writing

A written scope and fee before we start.

Demand notice help for clients across the UK.

We handle Indian income tax notices for NRIs, returning Indians and UK-owned businesses throughout the UK. Faceless proceedings are online, so it makes no difference where you live.

London

City of LondonCanary WharfHarrowWembleySouthallHounslowIlfordEast HamCroydonEdgware

South East

ReadingSloughMilton KeynesOxfordWatfordLutonCrawleyGuildford

Midlands

BirminghamLeicesterCoventryNottinghamWolverhamptonDerbyNorthampton

North of England

ManchesterLeedsBradfordSheffieldLiverpoolNewcastlePreston

East and South West

CambridgePeterboroughBristolSwindonSouthamptonBath

Scotland, Wales, NI

EdinburghGlasgowAberdeenDundeeCardiffSwanseaBelfast

Section 156 FAQs.

Usually 30 days from the demand notice, unless a different period is stated.
Interest is charged at 1% a month, and you can be treated as in default.
Disagree with it on the e-filing portal and request rectification, or appeal if it comes from an order you dispute.
A request not to recover the demand while an appeal is pending, usually granted on paying around 20% of the disputed amount.
Yes, through Indian net banking or other online payment options, including from an NRO account.

Received a demand you do not recognise?

Send it to us. We will check it and pay, rectify or dispute it.

Check my demand+91 9819 000 511

This page is general guidance based on the Income-tax Act, 2025 and the rules and return forms as they stand. It is not legal or financial advice for your situation. Forms, eligibility and due dates can change each year, so please check with us before filing.