# Demand response and stay application (s.156, s.220(6)): how to reply Notice of demand issued following an order ## Section and form names - Sections: 156, 289 ## Time limit to reply 30 days from service. Set by the statute or rules; counted from service. Unverified: this time limit is to be confirmed against the notified text. 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) ## 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. ## Related law - [Section 156, Income-tax Act, 1961](https://charterai.in/law/income-tax-act-1961/156) - [Section 289, Income-tax Act, 2025](https://charterai.in/law/income-tax-act-2025/289) ## FAQ ### 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. Draft this reply: https://charterai.in/sign-up Canonical: https://charterai.in/notice/income-tax-demand-response-and-stay-application-s-156-s-220-6