Now, it’s the season of ghost demands: old tax demands going back more than 15 years, long paid and closed, are popping up as new claims. In the past few weeks, several individuals have been slapped with notices from the Income Tax (I-T) department asking them to cough up the amounts within a week. While the department’s records show the demands as ‘unpaid’, taxpayers who have received the notices are confident they have no such outstanding with the tax office. Some of the notices pertain to assessment years 2003-04 and 2004-05. Many are clueless about how to go about handling the notices as the old payment challans and rectification orders, which can serve as proof of tax payment, have been misplaced.

Source: Economic Times October 21, 2023 10:35 UTC