The Classic Partners LLP
Section 245 Notice
The department wants to adjust your refund against an old tax demand? A Section 245 intimation gives you a short window to object. We verify the demand and protect your refund.
Save My RefundWhat is a Section 245 Notice?
An intimation under Section 245 of the Income Tax Act informs you that the department proposes to set off your current refund against an outstanding tax demand of an earlier year. Before the adjustment is made, you get an opportunity — typically 15 to 30 days — to agree or disagree with the demand on the e-filing portal.
Many old demands are incorrect: TDS credits not given, taxes already paid, demands already deleted in appeal, or duplicate entries from legacy systems. If you do not respond, the adjustment happens automatically — and recovering a wrongly adjusted refund is far harder than objecting in time. See our income tax notice overview for how Section 245 fits into the wider notice framework.
Common Reasons the Old Demand is Wrong
- TDS or advance tax paid but credit not reflected in the demand year.
- Demand already paid, but the challan was not mapped to the demand.
- Demand reduced or deleted by CIT (Appeals) or ITAT, but the portal not updated.
- Rectification under Section 154 filed but not processed.
- Legacy demands migrated incorrectly from old assessment records.
What We Handle
Demand Verification
Tracing the origin and correctness of the outstanding demand.
Portal Response
Filing agree/disagree responses with proof within the window.
Rectification Filing
Section 154 applications to delete or correct wrong demands.
Challan Mapping
Getting paid taxes correctly mapped against the demand.
Appeal-Effect Orders
Enforcing relief already granted in appellate orders.
Refund Release
Follow-up with CPC/AO until the refund actually lands.
Why Choose The Classic Partners
- Qualified Chartered Accountants who untangle legacy demand records.
- Deadline-first action — objections filed before auto-adjustment.
- Persistent follow-up until wrong demands are deleted and refunds released.
- Transparent fees and a single point of contact for your case.
Frequently Asked Questions
How much time do I get to respond to a Section 245 intimation?
Usually 15 to 30 days as stated in the intimation. If no response is filed, the refund is adjusted against the outstanding demand automatically.
How do I disagree with the outstanding demand?
Log in to the e-filing portal, go to "Response to Outstanding Demand", select disagree (fully or partly), choose the applicable reason, and upload supporting proof such as challans, appeal orders, or rectification requests.
Can my refund be adjusted against a demand that is under appeal?
You can object by citing the pending appeal and any stay granted. Adjustment against a stayed demand is improper, and we pursue the matter with the assessing officer where it happens.
What if the demand was already paid?
Submit the challan details in your disagree response and file a rectification to map the payment. Once the demand is corrected to nil, the full refund is released.
Will I get interest if my refund is delayed?
Yes. Refunds carry interest under Section 244A at 0.5% per month for the period of delay, computed as per the provisions applicable to your case.
Refund being adjusted under Section 245?
Object in time and get wrong demands deleted — talk to our CAs today.
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