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.
This article is solely for educational purposes. Navi doesn't take any responsibility for the information or claims made in the blog.
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