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.
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.
|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.
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(Republished with Amendments by Team Taxguru)