Section 245: refund adjusted against old demand (free)
What it means
The department proposes to set off your refund against an outstanding demand from an earlier year. You can agree or disagree with reasons.
What to do
- Open Pending Actions → Response to outstanding demand.
- Disagree if the demand was paid, is under rectification or is wrong; attach proof.
- Agree if correct; the balance refund is issued.
Deadline: 30 days from the intimation.
Documents you will need
- Intimation
- Challans
- Earlier orders
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Old section 245: new number [check] under the Income-tax Act 2025. Section numbers refer to the Income-tax Act 1961 / CGST Act 2017; the Income-tax Act 2025 renumbers income-tax sections from 1 April 2026 — the notice shows the applicable number. Checked by the founder on 16 Oct 2026.