Section 245 of income tax act

According to Section 245 of Income-tax Act, 1961 : Where under any of the provisions of this Act, a refund is found to be due to any person, the 1 Assessing Officer, 2 Deputy Commissioner (Appeals) 3, or the Commissioner (Appeals) or Commissioner or 4 5 Principal Chief Commissioner or Chief Commissioner or 6 Principal Commissioner or Commissioner, as the case may be, may, in lieu of payment of the refund, set off the amount to be refunded or any part of that amount, against the sum, if any, remaining payable under this Act by the person to whom the refund is due, after giving an intimation in writing to such person of the action proposed to be taken under this section. 1. Subs. by Act 4 of 1988, s. 2, for “Income-tax Officer” (w.e.f. 1-4-1988)./BR 2. Subs. by s. 2, ibid., “Appellate Assistant Commissioner” (w.e.f. 1-4-1988)./BR 3. Ins. by Act 29 of 1977, s. 39 and the Fifth Schedule (w.e.f. 10-7-1978). 4. Subs. by Act 4 of 1988, s. 2, for “Commissioner” (w.e.f. 1-4-1988). 5. Subs. by Act 25 of 2014, s. 4, for “Chief Commissioner” (w.e.f. 1-6-2013). 6. Subs. by s. 4, ibid., for “Commissioner” (w.e.f. 1-6-2013).

Amended and updated notes on section 245-I of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to Order of settlement to be conclusive. Recently, we have discussed in detail In this article, you will learn detail of the provisions of section 245-I of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962 as provided by Ministry of Law and Justice, Government of India. Section-245-I: Order of settlement to be conclusive Every order of settlement passed under sub-section (4) of

An income tax assessee will get 21 days to respond to notices issued by the Central Processing Centre (CPC) regarding set-off and withholding of refund. The Income Tax Department says this will help in avoiding delays in the issuance of refunds. The time limit for assessees to respond is at par with the time allowed for the assessing officer (AO) to respond which was lowered last year to 21 days from 30 days. Also, it has already been said that AO will be held responsible for any delay. An instruction issued by the Directorate of Income Tax (Systems), dated May 31 said, “Consequent to the deployment of online response mode, which is in place for a sufficiently long period of time and also in order to avoid delays in issue of refund, the time limit of 21 days is provided to the assessee to respond to intimation u/s 245(1) of the Income Tax Act issued by Centralised Processing Centre. This will apply with immediate effect.” Advance tax outflows the reason for banks’ tepid response to VRRR auctions Section 245 of the Income Tax Act prescribes the mechanism for the set-off of refunds against tax remaining payable. Accordingly, in case of refunds due, based on the demand uploaded, CPC issues prior intimation to the taxpayer to adjust the refund against the correct and legitimate actionable demand due. • Also read: In case of a grievance against the demand, the taxpayer can approach the AO who, in turn, is required to respond within the specified time. In the interim period, the...

The Income Tax Department may send an intimation to the taxpayer when it has a tax demand pending or when the taxpayer has claimed a refund from the department for some other assessment year. This is sent under Section 245 of the Income Tax Act, that empowers the assessing officer (AO) to adjust the previous year’s demand of tax payable with current year refund amount.

Getting an intimation notice underSection 245 of Income Taxis just the Income Tax department letting you know that they balance your tax dues from previous years with the current year’s refund. But the authority has to notify a taxpayer prior to the adjustment to get their consent. Why Do You Receive Intimation under Section 245? Section 245 deals with an Intimation notice received from the Income Tax department. It shows that the IT department is trying to adjust your dues from the previous year with the excess tax payment or refund. Time Period to Respond to Section 245 Tax Notice The IT department sends you an intimation notice so that you can respond to that with your consent or request, if any. In the notice, the time period by which you have to respond is also mentioned. Failing to respond by the time limit will lead to a final settlement without your consent or suggestion, and the actions taken cannot be reverted. Generally, the time is 30 days after a notice is received. Specimen of the Section 245 Tax Notice Procedure to Respond to the Assessing Officer Regarding Intimation under Section 245 There are four ways in which you can file your response to the Assessing officer regarding intimation under Section 245. Procedure is as mentioned below: Step 1: Log in to your e-filing portal Step 2: Under ‘E-file’ head, choose ‘Response to Outstanding Tax Demand’ Step 3: After clicking on ‘Submit Response’, a new page will open where you have to choose from the following fou...

Marginal note:Definitions • 245 (1) In this section, tax benefit tax benefit means • (a) a reduction, avoidance or deferral of tax or other amount payable under this Act, and includes a reduction, avoidance or deferral of tax or other amount that would be payable under this Act but for a tax treaty, • (b) an increase in a refund of tax or other amount under this Act, and includes an increase in a refund of tax or other amount under this Act as a result of a tax treaty, or • (c) a reduction, increase or preservation of an amount that could at a subsequent time • (i) be relevant for the purpose of computing an amount referred to in paragraph (a) or (b), and • (ii) result in any of the effects described in paragraph (a) or (b); ( avantage fiscal) tax consequences tax consequences, to a person, means • (a) the amount of income, taxable income or taxable income earned in Canada of the person under this Act, • (b) the tax or other amount payable by, or refundable to, the person under this Act, or • (c) any other amount that is, or could at a subsequent time be, relevant for the purpose of computing an amount referred to in paragraph (a) or (b); ( attribut fiscal) transaction transaction includes an arrangement or event. ( opération) • Marginal note:General anti-avoidance provision (2) Where a transaction is an avoidance transaction, the tax consequences to a person shall be determined as is reasonable in the circumstances in order to deny a tax benefit that, but for this section...

According to Section 245 of Income-tax Act, 1961 : Where under any of the provisions of this Act, a refund is found to be due to any person, the 1 Assessing Officer, 2 Deputy Commissioner (Appeals) 3, or the Commissioner (Appeals) or Commissioner or 4 5 Principal Chief Commissioner or Chief Commissioner or 6 Principal Commissioner or Commissioner, as the case may be, may, in lieu of payment of the refund, set off the amount to be refunded or any part of that amount, against the sum, if any, remaining payable under this Act by the person to whom the refund is due, after giving an intimation in writing to such person of the action proposed to be taken under this section. 1. Subs. by Act 4 of 1988, s. 2, for “Income-tax Officer” (w.e.f. 1-4-1988)./BR 2. Subs. by s. 2, ibid., “Appellate Assistant Commissioner” (w.e.f. 1-4-1988)./BR 3. Ins. by Act 29 of 1977, s. 39 and the Fifth Schedule (w.e.f. 10-7-1978). 4. Subs. by Act 4 of 1988, s. 2, for “Commissioner” (w.e.f. 1-4-1988). 5. Subs. by Act 25 of 2014, s. 4, for “Chief Commissioner” (w.e.f. 1-6-2013). 6. Subs. by s. 4, ibid., for “Commissioner” (w.e.f. 1-6-2013).

The Income Tax Department may send an intimation to the taxpayer when it has a tax demand pending or when the taxpayer has claimed a refund from the department for some other assessment year. This is sent under Section 245 of the Income Tax Act, that empowers the assessing officer (AO) to adjust the previous year’s demand of tax payable with current year refund amount.

Getting an intimation notice underSection 245 of Income Taxis just the Income Tax department letting you know that they balance your tax dues from previous years with the current year’s refund. But the authority has to notify a taxpayer prior to the adjustment to get their consent. Why Do You Receive Intimation under Section 245? Section 245 deals with an Intimation notice received from the Income Tax department. It shows that the IT department is trying to adjust your dues from the previous year with the excess tax payment or refund. Time Period to Respond to Section 245 Tax Notice The IT department sends you an intimation notice so that you can respond to that with your consent or request, if any. In the notice, the time period by which you have to respond is also mentioned. Failing to respond by the time limit will lead to a final settlement without your consent or suggestion, and the actions taken cannot be reverted. Generally, the time is 30 days after a notice is received. Specimen of the Section 245 Tax Notice Procedure to Respond to the Assessing Officer Regarding Intimation under Section 245 There are four ways in which you can file your response to the Assessing officer regarding intimation under Section 245. Procedure is as mentioned below: Step 1: Log in to your e-filing portal Step 2: Under ‘E-file’ head, choose ‘Response to Outstanding Tax Demand’ Step 3: After clicking on ‘Submit Response’, a new page will open where you have to choose from the following fou...

An income tax assessee will get 21 days to respond to notices issued by the Central Processing Centre (CPC) regarding set-off and withholding of refund. The Income Tax Department says this will help in avoiding delays in the issuance of refunds. The time limit for assessees to respond is at par with the time allowed for the assessing officer (AO) to respond which was lowered last year to 21 days from 30 days. Also, it has already been said that AO will be held responsible for any delay. An instruction issued by the Directorate of Income Tax (Systems), dated May 31 said, “Consequent to the deployment of online response mode, which is in place for a sufficiently long period of time and also in order to avoid delays in issue of refund, the time limit of 21 days is provided to the assessee to respond to intimation u/s 245(1) of the Income Tax Act issued by Centralised Processing Centre. This will apply with immediate effect.” Advance tax outflows the reason for banks’ tepid response to VRRR auctions Section 245 of the Income Tax Act prescribes the mechanism for the set-off of refunds against tax remaining payable. Accordingly, in case of refunds due, based on the demand uploaded, CPC issues prior intimation to the taxpayer to adjust the refund against the correct and legitimate actionable demand due. • Also read: In case of a grievance against the demand, the taxpayer can approach the AO who, in turn, is required to respond within the specified time. In the interim period, the...