How to deal with a notice u/s 245 of the Income-tax Act?

An Intimation or Notice from Income-tax department tends to put the receiver in a lot of stress. One can deal with this situation by understanding the purpose of the Notice and why was it served. In this write up , we will be focusing on intimation received under section 245 of the Income-tax Act.

What is intimation under section 245?

This section allows the tax authorities to set off a refund that has to be paid by the tax department against some previous outstanding tax amount due from the taxpayer. But it does not give liberty to the department to adjust the same without intimating the taxpayer. So, intimation under section 245 is nothing but a notice intimating you that the Income-tax authorities want to adjust your outstanding tax demands from your refund due. Intimation under section 245 will look like the one given below.

Initmation 245

How do I get the details of my Outstanding tax demand?

Just login on www.incometaxindiaefiling.gov.in and follow the below steps:

Step 1- Click on “My Pending Actions”. You will see a screen given below.

Final step 1

Step 2- You can then view, details of your outstanding demand and you will  see a “Submit” button , you have to click on it and respond to the outstanding demand. If you are not able to view the Submit button , it means that the Assessing Officer has already adjusted the same.

final step 2

Step 3- After clicking on the “Submit” button, you will see the screen given below:

final step 3

There are 3 heads available:-

  1. Demand is correct,
  2. Demand is partially correct and
  3. Disagree with demand, you will have to select the appropriate one and click on “Submit”.

I do not understand which of the three heads to select?

If you are not sure about the outstanding demand, whether it is correct or not, You can contact our tax experts and get help to respond to this intimation.You will have to share the intimation copy and  Income-tax related required documents , if any  asked by them.They will then review your income-tax return of the relevant year and help you respond to it.

Response time of Intimation

The intimation under section 245 will also contain the time period upto which response is to be given, failing which, the adjustment would be considered as final and no further action will be possible.So, it is important to respond to the same within the time period given.

If you still have any queries regarding this topic , you can raise a ticket on myitreturn.com. Our tax experts will resolve your queries and help you respond to your other Income-tax notices as well.

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How to deal with a notice u/s 245 of the Income-tax Act?
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An Intimation or Notice from Income-tax department tends to put the receiver in a lot of stress. One can deal with this situation by understanding the purpose of the Notice and why was it served. In this write up , we will be focusing on intimation received under section 245 of the Income-tax Act.
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