Intimation u/s 245 of the Income Tax Act

Okay, so you’ve received the Intimation u/s 245, now what shall be done?

Once you receive the Intimation u/s 245, read it in and out and check all the details along with the time mentioned within which you can take any action (generally it’s 30 days) because if you do not take any action then the outstanding demand as on that date will be considered for adjustment against your refund.

Now, there are two possibilities, either you agree to the outstanding demand or you do not.

• 1. If you agree with the Outstanding Demand:

  If you agree with the outstanding demand, then simply log onto www.incometaxindiaefiling.gov.in with your user id and password.
  Go to 'e-file' tab - > Response to outstanding demand - > Submit response - > Demand is correct - > Submit.
  Even if you do not take any action within the stipulated time, then the demand will be automatically adjusted with your refund.

• 2. If you do not agree/partially disagree with the Outstanding Demand:

  If you do not agree with the outstanding demand, then simply log onto www.incometaxindiaefiling.gov.in with your user id and password.
  Go to 'e-file' tab - > Response to outstanding demand - > Submit response - > Demand is partially correct/Disagree with demand - > Submit.
  In these cases, you’ll have to also submit the reasons for our partial/full disagreement with the demand like Demand Paid, Demand already reduced by rectification/revision, Appeal has been filed, others etc.
  Your work is done, now its upto the department that whether it agrees to your reason or not.

In any case, it’s advisable that you take the advice of a Chartered Accountant before taking any action.

What is the process for checking/verifying details of Outstanding Tax Demand ?

Step 1 : Login into your income tax e-filing portal with your user id and password.

Step 2 : Step 2 :Go to 'e-file' tab-> Response to outstanding demand

Step 3 : Given below screen will display and you can check the details from here.

What is the detail procedure to file online response ?

Step 1 : Login into your income tax e-filing portal with your user id and password.

Step 2 : Select the option of E-file -> Response to Outstanding Tax Demand

Step 3 : Click on submit response

Step 4 : After submit, you will be taken to given below screen and 4 options will be displayed.

Option 1 : Now if you click on Demand is correct

If assessees selects “Demand is correct”, then a pop up is displayed as given below. Click on submit button and a confirmation message is displayed on the screen for accepting the demand and –

If a refund is due, the outstanding amount and the interest will be adjusted against the refund due. Otherwise, you must pay the demand immediately.

Option 2 : Demand is partially correct

If assessees selects “Demand is partially correct” then below screen will be displayed

Now enter the amount which is correct, then click on submit and given below screen will be displayed along with incorrect amount which will be auto populated

Now assessee has to select any reason of disagreement, based on reason selected, assessee needs to provide additional information as below:-

• Demand has already been paid: If you select this option then provide the Challan Identification Number (CIN). Also mention BSR code, date of payment, the serial number of challan and amount.

  

• Demand has already been reduced by rectification/revision – Provide the date of order, demand amount after rectification , details of AO etc as given in below screen

  

• Demand has already been reduced by appellate order but appeal effect has to be given by the department – Provide the date of order and the appellate order passed by (details of appellate authority, and the reference number of order).

  

• Appeal has been filed - If you select this reason then details given in screen below needs to be provided

  

• Rectification/revised return has been filed at CPC – If you select this reason, then please provide additional information related to this

  

• Rectification has been filed with assessing officer – Mention the date of application and remarks (comments, if any of the taxpayer).

  

• Others - If there is any other reason apart from mentioned above then select this reason and provide you comment

  

Option 3 : Disagree with demand

If assessees is totally disagree with demand then select “Disagree with demand” then below screen will be displayed

Select the appropriate reason.Reason are similar as available under ‘Demand is partially correct’.and discussed above

Option 4 : Demand is not correct but agree for adjustment

If taxpayer selects this option then given below screen will be displayed

If you click on continue then assessee has to select reasons for disagreement similar to “Demand is partially correct”

What are the consequences of not filing response?

If no action is taken within 30 days of this notice u/s 245, the outstanding demand will be considered for adjustment against your refund after considering interest on demand. Interest shall be charged on principal demand pending of relevant assessment year. The demand of interest will be adjusted against refund without any confirmation of the assessee.

How to finding Jurisdictional Assessing Officer ?

Step 1 : Login into your income tax e-filing portal with your user id and password.

Step 2 : Select the profile settings -> My profile

Step 3 : Click on PAN details and given below screen will appear

How to Respond to the Assessing Officer?

Since the response is being made online no separate compliances in respect of responding to the Assessing Officer are required to be made unless and until specifically asked upon to do so by the Income Tax Department.