Section 245 Notice — Before Your Refund Gets Adjusted.
A Section 245 notice proposes to set off your refund against an outstanding demand from an earlier year. We verify the demand before it's adjusted.
Book Free ConsultationA notice under Section 245 is issued when the income tax department proposes to adjust a refund due for the current year against an outstanding tax demand from an earlier year. Taxpayers are given an opportunity to respond before the adjustment is made — which is important, since the underlying demand may already have been paid, disputed, or incorrectly recorded.
At N D Savla & Associates, we verify the outstanding demand referenced in Section 245 notices for clients across Nashik, Nagpur, Pune, Mumbai and the rest of Maharashtra before advising on the correct response.
Below is an overview of our Section 245 support, our process, and answers to frequently asked questions.
Our Section 245 Support
Demand Verification
We trace the outstanding demand referenced in the notice to confirm whether it is valid, already paid, or under dispute.
Portal Record Reconciliation
The demand shown on the income tax portal is reconciled against your payment history and prior orders.
Response Filing
Where the demand is incorrect or already settled, we file a response on the portal objecting to the proposed adjustment.
Rectification Coordination
Where the demand itself needs correction, we coordinate a rectification request under Section 154 alongside the Section 245 response.
Refund Release Follow-up
Once the matter is clarified, we follow up to ensure the refund is processed and released correctly.
Demand Dispute Resolution
Where the underlying demand is under appeal, we ensure this is reflected in the response to prevent an incorrect adjustment.
Our Section 245 Process
Notice Review
We identify the specific outstanding demand the department proposes to adjust against your refund.
Demand Verification
The demand is checked against your payment records, prior orders and any pending appeal.
Response Preparation
A response is prepared — either confirming, disputing, or clarifying the status of the demand.
Filing
The response is filed on the income tax portal within the window given.
Refund Follow-up
We track the matter to ensure the refund is processed correctly once resolved.
Why It Matters
Frequently Asked Questions
Received a Section 245 refund adjustment notice?
Share the notice with us — we'll verify the demand before your refund is adjusted.
