Demand response and stay application (s.156, s.220(6)): how to reply
Notice of demand issued following an order
- Section
- 156, 289
- Form names
- No form number printed
- Time to reply
- 30 days from service
- Reply goes on
- e-filing portal: Response to Outstanding Demand; stay letter to the AO
What the notice is
Notice of demand issued following an order
Filed through e-filing portal: Response to Outstanding Demand; stay letter to the AO.
Time limit to reply
30 days from service. Set by the statute or rules; counted from service.
- 30 days from service to pay, or a reduced period with JCIT approval; stay application should be filed within the same window (s.156, s.220)
Unverified: This is to be confirmed against the notified text.
Prescribed reply form
No prescribed reply form is recorded for this notice type. The reply is filed through e-filing portal: Response to Outstanding Demand; stay letter to the AO.
What the reply must include
- demand-wise analysis, kept separate from the stay application
- stay grounds: prima facie case, balance of convenience, financial hardship
- part-payment computation offered with the stay application
- cross-reference to a pending Form 35 appeal, if any
- explicit caution to verify the current CBDT office memorandum before stating a fixed pre-deposit percentage
Reply outline
Two distinct parts, kept separate: (1) demand-wise analysis (correct/incorrect/already paid/under appeal) and (2) a s.220(6) stay application with grounds, prima facie case, balance of convenience, financial hardship, plus the part-payment offered, cross-referenced to any pending Form 35 appeal. Never state a fixed pre-deposit percentage for the stay; verify the applicable CBDT office memorandum before quoting a number, since the commonly cited figure is unverified in this library. File the stay application within the same 30-day window as the demand, before recovery action begins.
Preliminary submissions
Identify the assessee, AY and the s.156 demand notice reference.
Demand analysis
Correct/incorrect, already paid, or under appeal, for each demand item.
Stay application grounds
Prima facie case, balance of convenience, financial hardship, and the part-payment offered. The pre-deposit percentage CBDT guidance suggests is unverified in this library, do not state a fixed figure without confirming the applicable office memorandum.
Prayer
Request stay of demand pending appeal, cross-referencing the Form 35 appeal if filed.
FAQs
What is a Demand response and stay application (s.156, s.220(6))?
Notice of demand issued following an order
What is the time limit to reply to a Demand response and stay application (s.156, s.220(6))?
30 days from service. To be confirmed against the notified text. Set by the statute or rules; counted from service.
How is the reply to a Demand response and stay application (s.156, s.220(6)) filed?
No prescribed reply form is recorded for this notice type. The reply is filed through e-filing portal: Response to Outstanding Demand; stay letter to the AO.
What should the reply include?
Demand-wise analysis, kept separate from the stay application; Stay grounds: prima facie case, balance of convenience, financial hardship; Part-payment computation offered with the stay application; Cross-reference to a pending Form 35 appeal, if any; Explicit caution to verify the current CBDT office memorandum before stating a fixed pre-deposit percentage.
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This page summarises the notice type for chartered accountants and is not legal advice. Check the notice and the notified text before you file.