Home»Blog»Income Tax»Intimation Notice under Section 245 of Income Tax Act: Adjusting Outstanding Tax Demand from the Taxpayer
Intimation Notice under Section 245 of Income Tax Act: Adjusting Outstanding Tax Demand from the Taxpayer
23 May 2022
Getting an intimation notice under Section 245 of Income Tax is just the Income Tax department letting you know that they balance your tax dues from previous years with the current year’s refund. But the authority has to notify a taxpayer prior to the adjustment to get their consent.
Why Do You Receive Intimation under Section 245?
Section 245 deals with an Intimation notice received from the Income Tax department. It shows that the IT department is trying to adjust your dues from the previous year with the excess tax payment or refund.
Time Period to Respond to Section 245 Tax Notice
The IT department sends you an intimation notice so that you can respond to that with your consent or request, if any. In the notice, the time period by which you have to respond is also mentioned. Failing to respond by the time limit will lead to a final settlement without your consent or suggestion, and the actions taken cannot be reverted. Generally, the time is 30 days after a notice is received.
Specimen of the Section 245 Tax Notice
Procedure to Respond to the Assessing Officer Regarding Intimation under Section 245
There are four ways in which you can file your response to the Assessing officer regarding intimation under Section 245. Procedure is as mentioned below:
Penalty for Not Paying Taxes after Intimation under Section 245
If you do not take any action even after getting the intimation notice under Section 245, the IT department will make the adjustments, and the penalty for the outstanding amount for that assessment year will be levied. This will be done without any confirmation from you as there was no response.
It is advisable to keep your tax demands on a check and claim the refund or pay dues on the given timeline. But if you get any intimation notice under Section 245 of the Income Tax, you should respond to the same within the deadline stating proper reasons, if any. Since most of the actions are accessible online, there is no reason to notify your Assessing Officer separately unless you need to do so.
FAQs on intimation notice under Section 245 of the Income Tax Act
Q1. How can one change the refund outstanding demand?
An assessee needs to submit an online response to the demand sent by the IT department and agree to the notice. After doing so, the authority will adjust the amount with the dues and raise intimation.
Q2. Who can be assessed under Section 245A(iii)?
Section 245A(iii) of Advance Ruling is applicable to non-Resident Indians only. It is specific to a certain category of residents of public sector units.
Q3. What should you do if you are not sure about any outstanding demand?
If you are unsure about how to respond to tax demand, you can contact the IT department. They might ask for the relevant income tax documents to verify your tax returns and help you respond to the intimation.
Q4. How can an Assessing Officer help you with your intimation notice?
If you have any queries or doubts regarding the intimation notice, you can reach out to the Assessing Officer for help. The AO will accordingly review the notice and help you respond to the CPC regarding any adjustment or refund.
Q5. What can you do if you are not satisfied with the decision taken?
If you don’t find the decision satisfying after rectification of refund, you can file a grievance through the e-filing portal. You will find an option to file your grievance under the Helpdesk option. Choose the assessment year and type of grievance and submit.
Before you go…
Looking for instant 🚀 personal loans 24*7 anywhere, anytime? Get personal loans up to ₹20 lakh starting at 9.9% p.a. Install the Navi app now!!
Or, maybe you’re looking to buy that house you’ve been eyeing 🏠 and you need a loan of up to ₹5 crore. Install the Navi app now and get instant in-principle approval right away! Interest rates starting at 8.39% p.a.
How about an affordable health insurance policy👨⚕️ starting at a monthly premium of just ₹235? Install the Navi app now and get your policy in under 2 minutes.
Instead, want to put your savings into action and kick-start your investment journey 💸 But don’t have time to do research. Invest now with Navi Nifty 50 Index Fund, sit back, and earn from the top 50 companies.
Disclaimer: Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
Vikram Kirloskar Origins – From Bicycle Repair Shop to Toyota
Facial Recognition-based Entry System in Airport Launched. Know More!
15 Best Christmas Gift Ideas Even Santa Wouldn’t Ignore
RBI Launches Digital Rupee – Is it Like Crypto?
The G.O.A.T. – Messi’s 7 Life-Changing Quotes You Can’t Ignore
Mercedes or SIPs – Indians Tweet Their First Choice
How to Open Demat Account: Fees, Eligibility, Documents
Udd Gaye Totey: 9 Funny Tweets that Got Indians ROFL
10 Best Places to Celebrate New Year 2023 in India
We are a diverse group of writers, editors and Subject Matter Experts striving to bring the most accurate, authentic and trustworthy finance and finance-related information to our readers. Our mission is to simplify jargon and industry lingo. We believe sharing knowledge through relatable content is a powerful medium to empower, guide and shape the mindset of a billion people of this country.
Section 115BAA of Income Tax Act
The Government of India brought in multiple amendments to the Income Tax Act of 1961 through the Ta...Read More »
Best Tax Saving SIPs in 2023: 10 ELSS Funds You Can Consider Investing In Through SIPs
SIP or Systematic Investment Plan is one of the most effective tax-saving instruments. You can clai...Read More »
Professional Tax: 2023 Slab Rates, Exemptions & Applicability In India
Professional tax in India is levied on anyone who is employed. From professionals such as accountan...Read More »
What is Profit After Tax and How is it Calculated? Why is it Important for Companies?
An essential step for all organisations is to ensure that they continuously monitor the amounts of ...Read More »
What is Accounting Equation – Meaning, Formula and Calculation with Example
Regardless of the size of the company, financial statements are created using a basic accounting eq...Read More »
Cost Inflation Index: What is CII and How is it Calculated?
The price of commodities rises over time, reducing the purchasing power of money, which is the numb...Read More »
What is White-Collar Crime and What is the Penalty?
White shirts, black coats and well-ironed ties are typical stereotypes representing the rich and el...Read More »
Form 12B – Its Significance in Income Tax and How to fill it
When you join a new company in the middle of a financial year, you must complete several formalitie...Read More »
What is Cash Memo, Its Benefits and How to Create It?
All transactions in accounting must have accurate documentation as proof of financial trail. Docume...Read More »
What is Condonation of Delay in Law? What are its General Principles?
As per the Indian law, there is a certain time frame to submit all forms and applications to the Re...Read More »
Foreign Exchange Management Act (FEMA): Its Regulations and Penalties
Import and export are essential components of the aggregate trade that occurs in India. Import-expo...Read More »
What is Withholding Tax? What are its Rates? How is it Different from TDS?
The Central government of India levies income tax, a type of direct tax, on the income of individua...Read More »
Diwali 2022: Diwali Holidays – The Festival of Lights
The ‘Festival of Lights’ is one of the biggest and most anticipated festivals in India. This is...Read More »
Best Index Funds – Top 20 Index Funds in India
Index funds replicate the performance of a stock market index, such as the Sensex or Nifty 50 to ge...Read More »