SHORT ANSWER:
A tax demand notice is a formal communication from the tax department requesting payment of outstanding taxes.
DETAILS:
- It is issued when a taxpayer has not paid their due taxes.
- The notice specifies the amount owed and the due date for payment.
- It may include penalties or interest for late payment.
PUNISHMENT / IMPLICATIONS (if applicable):
- Failure to pay the demanded amount can lead to further legal action, including penalties or recovery proceedings.
SOURCE:
- Income Tax Act, 1961 / Central Board of Direct Taxes (CBDT)
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