245 Notice Income Tax: Meaning, Process & What You Should Do

You were expecting a refund.

But instead, you receive a message saying —
“Notice under Section 245 of Income Tax Act”

Now you’re confused.

“Where did my refund go?”
“Why is it being adjusted?”

Here’s the truth.

A 245 notice income tax is not a penalty. It’s simply an intimation from the department that they plan to adjust your refund against an old tax demand.

What is Section 245 of Income Tax Act?

Section 245 of the Income Tax Act allows the department to adjust your refund against any outstanding tax demand from previous years.

In simple terms:

• You have a refund
• You also have pending tax dues
•  The department wants to adjust both

Before doing this, they send you a 245 notice.

What is a 245 Notice Income Tax?

A notice under Section 245 is an official communication informing you that:

• You have an old tax demand
• Your current refund will be adjusted
• You need to respond

This notice is issued to give you a chance to verify the demand before adjustment.

Why Did You Receive This Notice?

You receive a 245 notice income tax when:

• You have pending tax dues from previous years
• There was a mismatch in earlier returns
• Demand was raised but not paid
• Old tax liability is still active

Even if you are not aware of the demand, the system may still show it.

What Does the 245 Notice Contain?

Your notice will include:

• Assessment year
• Outstanding demand amount
• Refund amount
• Proposed adjustment
• Response deadline

This helps you understand the situation clearly.

What Should You Do After Receiving a 245 Notice?

Don’t ignore it.

You usually get 30 days to respond.

Here’s what you should do:

Step 1: Check the Demand

Verify if the demand is correct.

Step 2: Compare with Your Records

Look at old returns and payments.

Step 3: Decide Your Response

Agree or disagree.

How to Respond to Section 245 Notice

You can respond online.

Steps:

1. Login to income tax portal
2. Go to “Pending Actions”
3. Select notice
4. Choose response
5. Submit

This process is quick and easy.

How to View Income Tax Demand Notice Online

Many people search how to view income tax demand notice online.

Here’s how:

1. Login to portal
2. Go to “e-Proceedings” or “Pending Actions”
3. Check demand details

Always verify before taking action.

What If You Agree With the Demand?

If the demand is correct:

👉 Accept the notice
👉 Refund will be adjusted

No further action is required.

What If You Disagree With the Demand?

If you believe the demand is wrong:

• Select “Disagree”
• Provide reasons
• Upload documents
  For example:
• Tax already paid
• Demand incorrect
• Appeal filed

What Happens If You Don’t Respond?

If you ignore the notice:

👉 The department will automatically adjust your refund

You lose the chance to dispute it.

So always respond.

Section 245(1) and 245(2) Explained

You may see references like section 245(1) or section 245(2).

Section 245(1)

👉 Allows adjustment of refund against demand

Section 245(2)

👉 Deals with procedural aspects

For taxpayers, the main point is adjustment of refund.

Common Issues with 245 Notice

Many taxpayers face problems like:

• Demand already paid
• Incorrect demand amount
• Old unresolved cases
• Duplicate demand

Always check carefully.

How to Avoid Section 245 Notices

To avoid such notices:

• Clear old tax dues
• Check demand regularly
• Keep records of payments
• Verify returns

Regular monitoring helps.

Final Thoughts

A 245 notice income tax is simply an intimation.

It means:

• You have a refund
• You have pending dues
• The department wants to adjust

The key is:

• Verify the demand
• Respond within 30 days
• Take correct action

Ignoring it can cost you your refund.

Don’t Lose Your Refund Without Checking

Got a Section 245 notice and not sure if the demand is correct? Don’t take chances. Let experts review your case — visit Callmyca.com and get your income tax issue resolved quickly and accurately.