What is a section 245 notice?
A notice under section 245 tells you the department proposes to adjust a refund due to you against an outstanding demand. You have 30 days to reply, either agreeing or showing why the demand is wrong or has been paid. If you do not respond, the adjustment is made. We reply in time.
What can be rectified under section 154?
Only a mistake apparent from the record, such as an arithmetic error, an overlooked document or an incorrect credit for TDS. It cannot be used to re-argue a point that is debatable. We prepare the request with the specific error identified.
How long does a rectification take?
The order should be passed within six months from the end of the month in which the application was received, but in practice it can vary. We follow up on the portal and with the officer, and give you the status.
Do I have to pay the demand while the appeal is pending?
The law requires 20% of the disputed demand to be paid for stay of recovery, under CBDT instructions, though the officer can allow less in some circumstances. We apply for the stay and keep the payment minimal.
Why does an old demand show on my portal?
It may be from a processed return, an assessment, a TDS default that is linked to your PAN or an earlier notice. We pull the history of the demand, check each part and tell you whether it is valid.
Will an outstanding demand block my refund?
The department can adjust your refund against the demand after a notice under section 245, so the refund may be reduced. If the demand is wrong, it should be disputed first. We handle the sequence so that the refund is not lost.
Is every income tax notice a sign of trouble?
No. Many notices are routine: an intimation under section 143(1) only reports the result of processing your return, and a mismatch alert asks you to confirm figures. Scrutiny under 143(2) and reassessment under 148 are more serious. What matters is reading the section and the date mentioned and replying in the portal before it lapses.
What happens if I ignore an income tax notice?
The assessing officer can pass a best-judgment assessment under section 144 on the information available, usually with a higher demand, and penalties can follow under section 271(1)(b). An ignored notice also does not make the demand go away. A timely, documented reply is almost always cheaper than a default assessment.
How long do I get to reply to a notice?
The reply date is printed on the notice or in the e-proceedings tab of the portal; it is commonly between 7 and 30 days from issue. If the deadline is too short, an extension can be requested through the portal with reasons. Send us the notice the day you receive it so the response is complete, not rushed.
