Reply to your Section 245 income tax notice online starting at just INR 2999/- only.
Ebizfiling helps you respond correctly to Income Tax Notice under Section 245 and prevent wrongful refund adjustments.
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An Income Tax Notice under Section 245 of the Income Tax Act, 1961 is issued when the Income Tax Department intends to adjust a taxpayer’s refund for the current financial year against any outstanding tax demand from previous years. This process is called refund adjustment against past tax dues.
Before making such an adjustment, the Centralized Processing Centre (CPC) is required to inform the taxpayer and seek consent. The notice allows you to either agree or disagree with the proposed adjustment. This ensures that taxpayers are aware of the reason for refund reduction and have an opportunity to present their side before any action is taken.
If the old tax demand is genuine, the department can adjust the amount directly from your refund. However, often, the demand may arise due to clerical errors, outdated challans, double payments, or pending rectification requests. If you have already cleared the earlier dues or disagree with the claim, you must respond within 30 days from the notice date.
Ignoring this notice may result in the automatic adjustment of your refund without your confirmation, leading to loss of refund and potential mismatch in your tax records.
Timely response helps:
Protect your legitimate refund from incorrect adjustments.
Keep your Income Tax profile accurate and up to date.
Avoid confusion or disputes during future return filings or assessments.
In short, replying to a notice under Section 245 is crucial to confirm whether the past demand is valid or erroneous and to ensure a smooth processing of your refund.
Individuals whose refund is being adjusted against an old tax demand
Businesses receiving refund adjustment notifications
Taxpayers who disagree with a past demand or have already paid it
Anyone notified of a refund set-off under Section 245 of the Income Tax Act
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Filing a reply prevents wrongful refund adjustment and ensures your genuine refund is credited without unnecessary deductions.
Identifies incorrect or outdated past demands, helping you rectify them before refund adjustment or further action.
Timely response ensures compliance with Income Tax laws, avoiding complications in your future refund claims.
Professional handling provides clarity on your refund status, ensuring smooth communication with the department.
Proper reply protects your legitimate refund and prevents double recovery or overlapping tax payments.
Addressing the notice promptly ensures refund settlement and clears pending demand disputes efficiently.
Copy of Income Tax Notice under Section 245
PAN Card of the taxpayer
Previous year tax demand or assessment orders
Current year ITR acknowledgment
Bank account details linked with refund
Any proof of already paid tax or demand rectification
Upload Notice Copy
Demand Verification
Response Drafting
Online Submission
Acknowledgement Sharing
Notice Review: We review your Income Tax Notice Section 245 to identify refund adjustment details and verify old demand accuracy.
Demand Verification: Our experts cross-check previous tax records and ensure no duplicate or outdated tax demand is being adjusted.
Reply Drafting: We prepare a professional and compliant reply explaining your objection or agreement with the refund adjustment.
Portal Filing: Ebizfiling files your response directly on the Income Tax portal to ensure timely submission and acknowledgment.
Refund Protection: Our experts prevent unnecessary refund deductions by verifying all pending demands before confirmation.
Status Tracking: We keep you updated with response acknowledgment, refund credit status, and department clarification follow-ups.
It allows the department to adjust your refund against any pending tax dues after notifying you.
You received it because the department found an old unpaid tax demand and plans to adjust your current refund.
Yes. Replying ensures your refund is not wrongly adjusted against an invalid or already cleared tax demand.
Your refund may be automatically adjusted, even if the old demand was incorrect or already paid.
You usually have 30 days from the date of the notice to respond through the Income Tax portal.
No. It must notify you under Section 245 and consider your response before making any adjustment.
Log in to your e-filing account and view the ‘Outstanding Demand’ section for year-wise details.
Yes. You can file an online disagreement if the demand is incorrect or already settled.
If you accept it, the department will adjust the refund and issue the remaining balance, if any.
Attach old tax payment proofs, previous assessment orders, and current ITR acknowledgment for reference.
Yes. The Income Tax portal provides an acknowledgment confirming successful submission.
Yes. Ebizfiling’s team can verify records and draft a proper response on your behalf.
Yes. Refund processing is paused until you reply or the adjustment is finalized.
Yes. Companies with pending demands or refund claims can receive the same notice.
Check demand details on your portal and match them with previous return filings and challan records.
Submit the payment proof while replying, and the department will rectify the record.
Yes. Refunds may be adjusted against several pending demands from earlier years if valid.
Refund will be adjusted automatically, and it may be harder to reverse the set-off later.
No direct penalty, but delay may result in refund loss or future compliance issues.
Ebizfiling ensures correct demand verification, accurate reply filing, and refund protection with complete online support.
Reply to your Section 245 income tax notice online starting at just INR 2999/- only.
Ebizfiling helps you respond correctly to Income Tax Notice under Section 245 and prevent wrongful refund adjustments.
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