Demand Order
Income tax notice

The Income Tax Department might send you an intimation under Section 245 of the Income Tax Act, 1961 if you have an outstanding tax demand and are due a refund. This intimation proposes to adjust your refund against the outstanding demand.

Here’s how you can reply to this intimation:

1. Access the e-Filing Portal:

  • Go to the Income Tax Department’s e-Filing portal: www.incometax.gov.in
  • Log in using your user ID (PAN), password, and captcha code.

2. Navigate to ‘Response to Outstanding Demand’

  • On your dashboard, go to Pending Actions > Response to Outstanding Demand.
  • This page will show you any outstanding demands against your PAN.

3. Choose an Option and Submit Your Response:

You have two main options to respond:

  • Demand is Correct:
    • Select this if you agree with the outstanding demand.
    • You may also choose to pay the demand immediately by clicking ‘Pay Now.
    • Important: Once you submit this response, you cannot disagree with the demand later.
  • Disagree with Demand (Either in Full or in Part):
    • Select this if you disagree with the demand amount.
    • You must provide reasons for your disagreement, such as:
    • You may need to provide supporting documents.

4. Verify Your Submission:

  • After submitting your response, ensure that it has been recorded successfully.

Important Points to Remember:

  • Timely Response: Respond to the intimation within the stipulated time mentioned in the notice. If you miss the deadline, the department will likely adjust the demand against your refund.
  • Accurate Information: Provide accurate and complete information in your response.
  • Supporting Documents: Keep any relevant supporting documents (like proof of payment, appeal details, etc.) handy.
  • Seek Professional Help: If you are unsure about how to respond or need assistance, consult a tax advisor or chartered accountant.

By following these steps, you can effectively reply to the intimation and ensure your tax affairs are in order.