How to Respond to a Section 245 Notice (Refund Adjustment)
An intimation under Section 245 tells you the department proposes to set off a refund due to you against an outstanding demand of another year. Respond on the portal within thirty days, stating for each demand whether it is correct, already paid, or under appeal with a stay. Silence is treated as agreement and the adjustment goes through.
What is this notice?
A notice under Section 245 intimates that a refund due to you is proposed to be adjusted against an outstanding tax demand. You get an opportunity to agree or disagree before the set-off is made — so it is important to respond on time.
Common reasons it is issued
- An outstanding demand shown against your PAN
- A refund for the current year available for set-off
How to reply — step by step
- Verify the outstanding demand — its year, amount and whether it is correct or already paid/disputed.
- On the portal, agree (if correct) or disagree with reasons and proof (challans, rectification, stay/appeal status).
- If the demand is under dispute or already settled, submit that evidence to stop the adjustment.
- Respond within the stated window; no response is generally treated as consent to the set-off.
Draft your 245 reply in minutes
Upload your notice — Yukti extracts the allegation, verifies your facts, and drafts a citation-backed reply.
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What if I ignore a Section 245 notice?
Non-response is usually taken as agreement, and the refund is adjusted against the demand. Always respond, especially if the demand is wrong or disputed.
Related notices
This page is general information, not legal advice. Every notice turns on its own facts — verify with a professional or draft a fact-checked reply on Yukti.