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No need to respond to Income Tax Demands of Less than Rs. 100/-


Now a days many people are facing intimations from CPC regarding small demands of Re. 1, Rs. 4, Rs. 6 etc. Demand from Income Tax Department, let it be of such a small amount, makes most of the people panicky.  

Income Tax Department has come to ease the taxpayers in this regard and therefore have come up with a clarification which says that demand of less than Rs. 100 need not be paid as the same will be adjusted against future refunds.

As per CBDT, demand of less than Rs. 100 is not enforceable but is liable to be adjusted against future refunds.

So no need to panic, there is no need to pay an income tax demand of less than Rs. 100, as the same will automatically be adjusted against furture refunds. One may plan to pay extra tax equal to the amount of demand in next year so that the current demand can automatically get adjusted against the refund due.

One more logic behind not paying demand of less than Rs. 100 is that when refunds of less than Rs. 100 are not granted by Income Tax department, then demands of less than Rs. 100 shall also not be collected.


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