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The mere mention of ‘Intimation from IT department’ may sound stressful, especially if you are getting it for the first time. Worry not, we will tell you all about this intimation u/s 245 of the Income Tax Act. And what is more, you will also understand how to deal with it from the comfort of your home!

  1. Why Send Intimation Under Section 245
  2. How to access details of Outstanding Tax Demand
  3. Understanding the tax demand under Section 245
  4. Responding to the Assessing Officer

1. Why did I receive Intimation under Section 245?

This intimation is received when you have a tax demand pending from the IT department or when you have claimed a refund from them for some other assessment year. Section 245 of the Income Tax Act empowers the assessing officer (AO) to adjust the refund (or a part of the refund) against any tax demand that is outstanding from the taxpayer. In simple words, the IT department wants to adjust the refund due against a demand due from you. This demand may pertain to an earlier assessment year.

  section 245 of the Income Tax Act

2. How to access details of Outstanding Tax Demand

The details of your outstanding demand can be viewed on www.incometaxindiaefiling.gov.in

Login in with your username and password for this site. Go to the tab named e-File,and click on ‘Response to Outstanding Tax Demand’. Here, you can view the details of your demand. You may also submit a response — ‘Demand is Correct’, ‘Demand is Partially Incorrect’, or ‘Disagree with the Demand’. If ‘Submit Response’ option is not shown, that means the demand has already been finalized by your assessing officer.

3. Understanding the tax demand under Section 245

In case you are not sure how this demand has been calculated and whether you should pay for it or get it adjusted as per the intimation, do not worry! It is possible that there has been a genuine error or it may be that your demand has been incorrectly calculated. Our experts can review the return for the year for which demand has been raised and help you respond to it.

4. Responding to the Assessing Officer regarding intimation under section 245

The intimation usually states that you need to respond to the assessing officer or CPC Bangalore as to why such adjustment shall not be made. Our experts can review your tax return and the demand that has been raised to prepare a suitable response on your behalf for the assessing officer. The AO shall review the response and communicate to CPC for processing the refund or adjustment of the demand.

Reach out to us support@cleartax.in in case you have received an intimation under section 245 and need help to respond to it.    

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