To,
The Income Tax Officer
[City]
[Pin Code]

Assessee Details:

• Name: ……………………………
• PAN: ……………………………
• Status: ……………………………
• Assessment Year: ………………..

Subject: Request for Stay of Demand – Rs. ………………

Reference: Your Order Dated ……………….

Respected Sir/Madam,

With reference to the above-mentioned subject, and in continuation of our previous submissions, I wish to submit the following:

1. Assessment & Appeal Status:
   • I was assessed under Section ……… and a demand of Rs. ………… was raised against me.
   • I have filed an appeal with the CIT (A) on [Date].
2. Payment Details:
   • I have already paid Rs. ……………… on 31/03/2022 against the outstanding demand.
   • This amount constitutes more than 20% of the tax demand as required under the CBDT guidelines.
   • The copy of the challan is enclosed as Annexure-I.
3. Request for Stay of Demand:
   • As per CBDT Instruction No. 1914 dated 21.03.1996 and further clarified by O.M. No. 404/72/93-ITCC dated 29.02.2016, if 20% of the disputed demand is paid, a stay on recovery should be granted until the disposal of the first appeal.
   • For your reference, a copy of the relevant CBDT instruction is enclosed as Annexure-II.

In light of the above, I kindly request you to grant a stay of demand.

Thanking you.

Yours faithfully,
[Your Name]
[Your Address]
Place: ………………………
Date: ………………………

CBDT Guidelines on Stay of Demand (Latest Updates)

CBDT Instruction No. 1914 & Office Memorandum (O.M.) Updates

F.No. 404/72/93-ITCC (FTS:284146) – Issued by CBDT on 31st July 2017

The Central Board of Direct Taxes (CBDT) has modified earlier instructions regarding the procedure for stay of demand at the first appeal stage:

• As per O.M. No. 404/72/93-ITCC dated 29.02.2016, a taxpayer disputing a demand before CIT(A) must pay 15% of the demand to obtain a stay.
• However, as per the revised order dated 31.07.2017, this percentage has been increased to 20% of the disputed demand.
• If 20% of the disputed amount is paid, the Assessing Officer must grant a stay until the disposal of the first appeal.

Key Takeaways from CBDT Guidelines:

• Mandatory Stay: If the taxpayer has paid 20% of the disputed tax demand, a stay on further recovery must be granted.
• No Immediate Coercive Action: The Assessing Officer cannot initiate recovery actions if the stay conditions are met.
• Compliance Instructions: These guidelines apply to all officers for uniform enforcement.

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