Detailed Explanation
How it works
Filing an income-tax appeal does not by itself suspend recovery. A separate application for stay is required, and administrative practice has settled on a deposit of around twenty per cent of the disputed demand as the customary condition. This is practice rather than statute, so a lower figure can be sought on the facts — particularly where the addition is covered by binding precedent. The Tribunal also has power to grant stay, subject to its own conditions.
Frequently asked questions
Is the twenty per cent deposit a statutory requirement?
No. There is no statutory pre-deposit for an income-tax appeal; twenty per cent is the conventional starting point in administrative instructions.
Does filing an appeal stop recovery automatically?
No. Recovery continues unless a stay is separately applied for and granted.