Section 289: notice of demand

The basic demand notice

When any tax, interest, penalty, fine or other sum is payable as a consequence of an order passed under the Act, the Assessing Officer must serve on the assessee a notice of demand, in the prescribed form, specifying the sum payable.

Where a sum is determined as payable by the assessee, deductor or collector under section 270 or 399, the intimation issued under those sections is itself deemed to be a notice of demand for the purposes of this section.

Deferred payment for eligible start-up ESOP income

Where an assessee's income for a tax year includes income of the nature specified in section 17(1)(d) (specified security or sweat equity shares), and those shares were allotted or transferred by an eligible start-up employer referred to in section 140, the tax or interest on that income included in the notice of demand is payable within fourteen days of the earliest of:

• the expiry of sixty months from the end of the relevant tax year;
• the date the assessee sells the specified security or sweat equity share; or
• the date the assessee ceases to be an employee of the employer that allotted or transferred the shares.

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