Old Income Tax Demands Resurface on Portal, Leaving Taxpayers Confused About Validity and Next Steps
Several taxpayers are facing confusion and concern after decades-old income tax demands suddenly appeared on the official income tax portal. These demands, some dating back to assessment years as early as 2005 and 2009–11, have taken many by surprise, as taxpayers claim they were never informed about such outstanding liabilities earlier. The issue has raised serious questions about notice delivery, procedural lapses, and the mounting interest burden on unpaid dues.
Why Old Income Tax Demands Are Showing Up Now
According to reports, the sudden visibility of old income tax demands is likely linked to the tax department’s ongoing digitisation drive. As part of this process, legacy records, including past assessment orders and demand notices, are being uploaded to the online portal. While the demands themselves may have been legally raised years ago, their reappearance without prior communication has created uncertainty for taxpayers.
In many cases, taxpayers say they have no clarity on why the demand was raised, whether it was challenged earlier, or if it was already settled. Some are even questioning the legal validity of these demands, given the long gap and lack of communication.
Interest Amount Exceeds Original Tax in Several Cases
One of the most troubling aspects of this issue is the sharp increase in interest on unpaid dues. In several instances, the interest component has grown over the years to become higher than the original tax amount. Since interest continues to accrue annually on outstanding tax liabilities, taxpayers now find themselves facing inflated demands that are far higher than what was initially assessed.
Experts point out that this situation could have been avoided if timely communication had taken place, allowing taxpayers to appeal or resolve the matter within the prescribed period.
Time Limits and Legal Procedures Involved
As per the rules applicable at the time, income tax assessments and notices were governed by strict timelines. For example, for the financial year 2009–10, notices for assessments involving amounts exceeding one lakh rupees could be issued up to March 31, 2017. The assessment order, in such cases, had to be passed by December 31, 2017. Following this, a demand notice would typically be issued, giving taxpayers 30 days to file an appeal before the Commissioner of Income Tax (Appeals).
If a taxpayer did not receive the assessment order or demand notice, they would effectively lose the opportunity to appeal within the stipulated timeframe, even though interest on the alleged dues would continue to accumulate.
Taxpayers Can Claim Non-Receipt of Notices
In many of the resurfaced cases, taxpayers may legitimately claim that they never received the assessment or demand orders. Possible reasons include non-delivery, dispatch to incorrect addresses, or failure in communication during earlier, non-digital processes.
Tax experts suggest that in such situations, taxpayers have the right to ask the income tax department to provide proof of delivery of the notices. The burden of proof lies with the tax authorities to demonstrate that the notices were properly served and communicated within the legally prescribed period.
Signs of Procedural Lapses
Legal professionals believe that the sudden appearance of old demands points toward procedural gaps in the communication of tax orders. Ashish Karundia, founder of a tax advisory firm, has stated that it is the responsibility of tax authorities to establish that statutory notices were duly issued and assessment and demand orders were properly communicated within the allowed time limits.
If the department fails to provide such evidence, taxpayers may have grounds to challenge the demands on procedural and legal grounds.
What Taxpayers Should Do Now
Taxpayers who see old income tax demands on the portal should not panic or rush to pay immediately. Experts advise reviewing the details carefully, checking whether the demand was previously contested or settled, and seeking professional advice if needed. In cases where notices were never received, taxpayers can formally raise objections and request supporting documentation from the department.
Conclusion
The reappearance of old income tax demands has created an unusual and stressful situation for both taxpayers and tax authorities. While the digitisation of records is a positive step toward transparency, it has also exposed gaps in past communication and compliance processes. How these legacy issues are resolved will be crucial in maintaining trust in the tax system and ensuring fair treatment for taxpayers going forward.
