Confused with old tax demand notices? Here are solutions

Taxpayers are now approaching tax experts as they receive notices from tax authorities for outdated tax demands dating back even 20 years

- MONIKA YADAV

Many taxpayers in the country are facing a perplexing challenge as outdated tax demands, some dating back as far as 20 years, resurface, and this unexpected development has left individuals in a state of confusion and concern, prompting them to seek resolution from tax experts.

The demands, believed to be a result of system errors and outdated records, have caught taxpayers off guard. Many individuals who had already made payments or had their demands adjusted against tax refunds are now receiving notices claiming unpaid dues. Others are facing demands for which the window for appeals or rectification applications has already closed.

Shruti K P, a lawyer from IndusLaw, suggests submitting relevant documentary evidence to the tax authorities to prove that payments were made or demands were adjusted.

"In case of demands in relation to some old financial years, where the taxpayer had already discharged the payments or where the demands were adjusted against tax refunds, the taxpayer may submit the requisite documentary evidence of such payments / adjustments to the tax authorities. Where such demands are genuine but are not paid till date and even not contested before any appellate forum, the taxpayers may have to pay without any further delay," she said.