Income Tax Notice Under Section 245.
Adjustment of Refund Against Outstanding Tax Demand.
A notice under Section 245 of the Income Tax Act is issued when the Income Tax Department proposes to adjust your current year’s refund against an outstanding tax demand of a previous assessment year.
While this notice does not involve scrutiny or reassessment, ignoring it can result in your refund being adjusted without your consent—even if the old demand is incorrect or already resolved.
At N D Savla & Associates, we help taxpayers review, respond to, and resolve Section 245 notices correctly and on time.
What Is a Section 245 Notice?
Section 245 allows the Income Tax Department to:
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Adjust income tax refunds
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Against pending tax demands
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After giving the taxpayer an opportunity to respond
The notice is usually issued online and requires you to either accept or dispute the proposed adjustment within the given timeline.
Common Reasons for Section 245 Notices:
Section 245 notices are often triggered due to:
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Old outstanding demands appearing in the tax portal
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Mismatch between filed returns and assessment records
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Demand raised due to earlier processing errors
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Demand already paid but not updated in records
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Demand stayed or under appeal but still reflecting
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Legacy cases transferred during system migrations
Many Section 245 demands are incorrect, duplicated, or time-barred—but they must be challenged properly.
Why You Should Not Ignore a Section 245 Notice ?
If no response is submitted:
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Your refund may be automatically adjusted
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Incorrect demands may continue to appear every year
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Cash flow gets impacted unnecessarily
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Future refunds may also be withheld
Once adjustment is made, reversal becomes more time-consuming.
How We Handle Section 245 Notices ?
-Demand Verification
We verify whether the outstanding demand is valid, paid, stayed, or disputed.
-Data Reconciliation
Cross-check with:
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Form 26AS
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AIS
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Assessment orders
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Challans and payment proofs
-Filing Response on Income Tax Portal
We submit the correct response—acceptance or dispute—along with supporting documents.
-Rectification or Appeal Support
If the demand is incorrect, we assist with rectification under Section 154 or follow-up with the Assessing Officer.
-Refund Protection Strategy
Our focus is to prevent wrongful adjustment and ensure legitimate refunds are released.
Our Section 245 Services Include:
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Review of outstanding tax demand
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Advisory on accept vs dispute decision
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Filing online response to Section 245 notice
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Rectification and follow-up for incorrect demands
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Coordination with tax authorities
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Refund recovery assistance
Who We Assist ?
We regularly handle Section 245 matters for:
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Salaried individuals and pensioners
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Business owners and professionals
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Startups and companies
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NRIs with past Indian tax filings
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Taxpayers facing recurring refund adjustments
Why Choose N D Savla & Associates ?
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Deep experience in income tax notices and demand resolution
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Practical, no-nonsense approach
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Clear explanation of options and risks
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Timely action to protect refunds
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Trusted CA firm serving clients across Mumbai and India
We don’t let system errors cost you money.
Protect Your Refund. Act on Time.
A Section 245 notice is time-sensitive. If you’ve received one, review it before responding—especially if the demand looks unfamiliar.
Get expert help and safeguard your refund.
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