Many times we received the intimation under section 245 stating that the refund which you have claimed in income tax return will be adjusted against the outstanding demand. In such case, most of the assesses got panic and have various doubts as to how they should respond to this intimation. Hence, today I am writing this article covering most important FAQs relating to Section 245 and Outstanding Demand under Income Tax.
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Your return has been processed at CPC and the same has resulted in refund. The refund so determined is liable to be adjusted against the outstanding demand. Notice u/s 245 informs you of such demands against which your refund would be adjusted within 30 days from date of the notice u/s 245.
♠ Response can be made by logging into https://incometaxindiaefiling.gov.in with your user id and password. Go to ‘e-file’ tab-> Response to outstanding demand.
i. In case the demand shown is correct:-
a) Against the Outstanding Demand- click on ‘Submit response’ and then select->’Agree with Demand’. On receipt of the confirmation, demand will be adjusted against the refund and the balance of refund, if any, will be issued.
ii. In case the demand shown is partially correct
a) Against the Outstanding Demand- click on ‘Submit response’ and then select->’Demand is partially correct’. Enter the amount of Demand that is partially correct
b) For the incorrect demand, please follow the steps mentioned in step 3 below.
iii. In case the demand shown is incorrect
a) Against the Outstanding Demand- click on ‘Submit response’ and then select->’Demand is incorrect’
b) Give detailed reasons and attach relevant documents to show why the demand is incorrect in your view. This will be reviewed by the Department.
To know the detail procedure for filing online outstanding demand response-> Please log onto https://incometaxindiaefiling.gov.in->Go to ‘Help Tab’ -> ‘Response to Outstanding tax Demand’
To know your Jurisdictional Assessing Officer details -> Please log on to https://incometaxindiaefiling.gov.in and click on “Know Your Jurisdictional AO” under “SERVICES” menu.
If no action taken by you within 30 days of receipt of the notice u/s 245, the outstanding demand as on that date will be considered for adjustment against your refund.
The return has been processed at CPC:
The return has been processed by Assessing Officer:
Listed below are some of the commonly noticed scenarios, which may result in demand while processing the return at CPC and suggested action! resolution for such scenarios. If the outstanding demand in your case is on account of any of the reasons below, you are requested to initiate the suggested action at the earliest.
S.No | Scenario | Resolution |
1 | Information in the Income Tax Return (ITR) or appropriate schedules are not filled up correctly and completely resulting in difference in computation of Total income/ Exemption/ Deduction/ Tax/ interest etc by CPC. | 1. Please refer to the intimation sent to your email address. In case of variation in the figures of total income! Exemption/ Deduction/ tax/ interest etc, the relevant schedules which caused the error! difference are annexed to the intimation. On examination of these schedules, the tax payer may apply for rectification online by resubmitting the correct information! schedules.
2. Tax payer can apply for rectification u!s 154 of the Income Tax Act, through the procedure given below: a. Please log on to https://incometaxindiaefiling.gov.in with your user ID and password. b. Select “Rectification request” under My Account tab and enter the necessary details. c. Select appropriate Rectification Type based on information: (i) If change is required only with respect tax details – > Select “Tax payer is correcting data for tax mismatch only”. (ii) If change is required with respect to any other data -> Select-“Taxpayer is correcting the data in rectification”. (iii) If no changes required from assesse -> Select “No further data correction required. Reprocess the case”. |
2 | If tax credit as claimed by the assessee has not been allowed while processing. | Please refer the tax mismatch communication sent along with the intimation order to your email ID. Tax mismatch communication will contain the details of mismatch and possible resolution. |
https://incometaxindiaefiling.gov.in with your user id and password. Go to ‘e-file’ tab->Response to outstanding demand. If after a period of 30 days of your payment the tax demand is not updated at the aforementioned website, please feel free to contact the CPC Customer Care at 18004252229.
Disclaimer: The contents of this article are for information purposes only and does not constitute advice or a legal opinion and are personal views of the author. It is based upon relevant law and/or facts available at that point of time and prepared with due accuracy & reliability. Readers are requested to check and refer to relevant provisions of statute, latest judicial pronouncements, circulars, clarifications etc before acting on the basis of the above write up. The possibility of other views on the subject matter cannot be ruled out. By the use of the said information, you agree that Author / TaxGuru is not responsible or liable in any manner for the authenticity, accuracy, completeness, errors or any kind of omissions in this piece of information for any action taken thereof. This is not any kind of advertisement or solicitation of work by a professional.
(Republished with Amendments by Team Taxguru)
I have filed an ITR for year 2022-23 and was showing an refund will be issued for ₹8k.
As I didn’t get the refund I checked the IT site and it was showing a demand notice for ₹12k pending for the assessment year 2008.
Why Income Tax asking me to pay for 2008 pending. please advice how to deal with this.
Is it not time barred to recover any amount pending from 2008.
please let me know what need to be done.
sir meri itr 1 me galti hui h kya kre. Please give me answers
An outstanding taxdemand came to me after efiling has done for the ass.year 2018-19.I paid tax in canara bank by using the challan copy in the demand notice.Shall ineed to do anything further ?
How to and whom to be contacted for release of amount adjusted against demand, after rectification of demand.
Sir, I am submitting my problem, pointwise, as below
1) ITR for AY2011-12 was filed as paper filed written
2) Jurisdictional Assessing officer imposed a demand of Rs. 59600/- as tax for the year and intt. thereon. As tax claimed in ITR was not reflecting in the F26AS.
3)Due to this demand the CPC has adjusted refunds for the subsequent years AY2012-13,AY2013-14 & AY2014-15 u/s 245.
4) I informed the matter to the tax deductor and requested him to take appropriate action.
5) Afterward the tax credit is being reflecting in the F26AS for AY2011-12.
6) The Assessing Officer then requested for rectification of the demand.
7) The JAO rectified the full demand issued refund vide letter No. ITBA/ADM/S/26/2017-18/1004065029(1) Dated
24/04/17.
8) As per resolution given by the Assessing Officer I have submitted a letter to the ASSISTANT COMMISSIONER OF INCOME TAX-CPC, Bangluru informing him to release the refund amount adjusted against the demand which is rectified by the AO.
9) I have not received any response from the AC-CPC,Bangluru.
10) what else should I do now, please suggest.
i have a problem i filled itr 4s of ay 15-16 ad i claimed relief u/s 89 and now i get notice of outstanding demand of claiming amount . how can i solved it ?
My father has fallen in a problem. He deposited IT through challaans as ADVANCE/SELF Asst tax at the SBI. But it dd not reach the system of the IT OFICE AT WD 2((1), now 24(1) , CHINSURAH, HOOGHLY. Several replies have been made but no action. SBI has also been approached. The cases are of Asst yrs 2009 and 2010. No record are available. When prressure was put on them they tried to cover it by depositing under section 194A and form 16A was given to me. But the amounts 69040/- and 5870/– have been shown by the as income and deposited tax of Rs 6904/- and 587/- . But this will again create a prblem as these amounts will be added to my income and tax will further increasee his tax. Bank was agan approached and they ahve raised their hands and now don’t know how they can help me. Kindly see if anthing can be done.
How to correct the Challan, if somehow, the TDS deposited in a different Category.
what is to be done if the jurisdictional officer is taking his own sweet time,under one pretext or the other even after bringing the error to the ito in wrting? How long should one wait before taking recourse to ombudsman?