DRC-03A is an application to adjust an amount you paid through DRC-03 against a specific demand order. It solves a common problem: the tax was paid, but the demand still shows outstanding in the electronic liability register because the payment was not made against the order.
Many taxpayers paid amounts through DRC-03 instead of paying against the demand in the liability register. The demand then continued to appear as unpaid, leading to recovery notices. Rule 142(2B), inserted in 2024, allows the payment to be credited against the demand through DRC-03A.
Before filing, compare the DRC-03 amount with each head of the demand. Where one DRC-03 covers several demands or periods, you can split it, but the total adjusted cannot exceed what was paid.
On the portal, file DRC-03A with the ARN of the DRC-03, its date and amount, the demand order reference, and the head-wise and period-wise break-up of tax, interest, penalty and other amounts to be adjusted. The break-up must match the demand. Once filed, the amount is credited against the demand as if paid on the date of the original DRC-03.
Because the credit relates back to the DRC-03 date, an amount paid earlier can count towards the pre-deposit for appeal and can stop recovery of the amount already paid. Check the liability register after filing. If recovery action was started for an amount you had paid, send the officer the DRC-03A acknowledgement and ask for release.
Received a notice like this? Our chartered accountants draft the reply from your records and an authorised representative follows up with the officer, so you do not have to visit the department. Call or WhatsApp +91 63677 44602, or use the form below.
This guide explains the law in general terms as of October 2026. Time limits and requirements can depend on the facts of your case and on the notice you received.
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