Template Description

This template for requesting the release of a bank account is a formal letter intended for use by individuals or entities seeking to have their bank accounts released from attachment by tax authorities. The document is 2-page MS Word document and is mandatory for taxpayers who have had their bank accounts attached due to pending tax disputes. Taxpayers, Chartered Accountants and Tax Consultants, Legal Advisors.

Understanding the request to IT department to release the Bank Account

Terminologies:

Attachment of Bank Account: A legal action where a bank account is frozen or restricted due to pending tax demands or disputes, typically initiated by tax authorities.

Stay of Demand: A legal order granted by a tax authority or appellate authority that temporarily suspends the enforcement of a tax demand.

Unique Uses of the Template:

Formal Request: Provides a structured format for formally requesting the release of a bank account attached by tax authorities, ensuring clarity and adherence to required details.

Tax Dispute Management: Useful for taxpayers who have had their accounts attached due to outstanding tax demands or disputes, helping to manage and resolve these issues effectively.

Documentation Support: Helps in compiling and presenting the necessary details related to the stay of demand and payment of tax, ensuring that the request is well-supported and justified.

Required Documents:

Reference to Stay of Demand: The template requires a reference to the letter or order from the assessing officer granting a stay of demand, which is crucial for validating the request.

Payment Proofs: Includes details of payments made towards the tax demand, such as challan numbers and amounts, which must be reflected in Form 26AS.

Form 26AS: A copy of Form 26AS should be attached, demonstrating that the payments have been made and are recorded as per tax records.

Appeal Details: Information about the appeal filed before the CIT (A), including the date of filing and the current status, should be included to justify the request for account release.

Conclusion

 The Request to Release the Bank Account is an essential for individuals or entities facing a tax dispute where their bank account has been attached. By using this template, taxpayers can formally request the release of their accounts by providing detailed information and supporting documentation, ensuring compliance with procedural requirements. This helps in managing and resolving tax disputes efficiently, enabling the taxpayer to regain access to their funds while awaiting the final decision on the appeal.