Section 156 Demand Notice 30 days to pay, stay, or contest.
A Section 156 notice is the formal notice of demand — tax, interest, or penalty payable. You have 30 days to comply, or face recovery action. Stay applications, rectification, instalment requests, and appeals are all on the table; the right move depends on the facts.
Section 156 of the Income Tax Act requires the Assessing Officer to serve a notice of demand on the assessee specifying the sum payable, where any tax, interest, penalty, fine, or other sum is found due in consequence of any order. The notice triggers a 30-day window for payment, beyond which the assessee is treated as in default and recovery action begins.
Being treated as in default has serious consequences — interest under Section 220(2) at 1% per month, garnishee orders to banks, attachment of property, and recovery through Tax Recovery Officers. Yet, in most cases, the right response is not immediate payment but a structured approach — verify the demand, file rectification where there is an error, apply for stay if appeal is filed, request instalments if cash flow is tight, and where the demand is genuine, pay within the window.
Our team handles every dimension of a 156 demand — demand verification with the AO and CPC, stay applications before the AO, CIT(A), and ITAT, rectification under Section 154 for apparent errors, instalment representations under Section 220(3), and full appellate advice. The goal is to protect cash flow while preserving every contestable right.
Our 156 Response Services
Demand Verification
Verifying the demand notice against the assessment order and computation to identify any computational error.
Rectification u/s 154
Filing rectification applications where the demand contains apparent mistakes in computation or credit.
Stay Application to AO
Filing stay applications before the Assessing Officer along with the appeal before CIT(A).
Stay Before CIT(A) & ITAT
Stay applications before CIT(A) and ITAT for protection of the disputed portion of the demand.
Instalment Requests u/s 220(3)
Drafting requests for payment of demand in instalments where cash flow does not permit lump-sum payment.
Garnishee & Attachment Defence
Defence where the AO has issued garnishee orders or attachment notices for recovery.
Appeal Coordination
Coordinating the demand strategy with the appeal at CIT(A) and ITAT for a unified approach.
Demand Closure
Working with CPC and AO to close the demand on portal after payment or appellate relief.
Our 156 Workflow
Demand Review
Verification of the demand against the assessment order, computation, and credit for taxes paid.
Strategy Choice
Choosing between payment, rectification, stay application, or instalment based on facts and prospects.
Filing & Submission
Filing the chosen remedy with proper grounds and supporting documents.
Stay Hearing
Attending stay hearings before AO, CIT(A), or ITAT as required.
Closure & Recovery
Securing demand closure on portal after payment, rectification, or appellate relief.
Why Quick Action Helps
Frequently Asked Questions
Section 156 is a notice of demand specifying the tax, interest, penalty, or other sum payable in consequence of any order under the Income Tax Act. Payment is due within 30 days.
You are treated as in default, interest is levied at 1% per month under Section 220(2), and the AO can proceed with recovery action including garnishee orders and attachment.
Yes. Stay applications can be filed before the AO under Section 220(6), and before CIT(A) and ITAT once appeal is pending. The disputed portion is typically protected.
Yes. Section 220(3) allows the AO to grant instalments on application by the assessee, with proper reasons and a clear schedule of payment.
You can file a rectification under Section 154 to correct apparent mistakes in computation, tax credit, or other portions of the order. The demand stays in abeyance till rectification is decided in most cases.
Got a 156 Demand Notice?
Don't let a demand turn into default and recovery. Talk to our team within 30 days for verification, stay, rectification, or instalment — whichever fits.
Handle a 156 Demand or call +91 9819 000 511