Income Tax

Section 245: Intimation of refund adjustment against outstanding demand

Section 245 intimation: refund demand me adjust ho raha hai

Updated 11 November 2026 · For taxpayers in India

An intimation under Section 245 says the department proposes to adjust your current refund against an older outstanding tax demand.

Deadline to reply	30 days from the intimation.
How to reply	Response to outstanding demand
Where	Income-tax e-filing portal → Pending Actions → Response to Outstanding Demand

Why you may have received it

• Unpaid demand from an earlier year's processing or assessment
• Demand already paid but not updated
• Demand under appeal or rectification

How to reply, step by step

1. Check the old demand: year, amount, and whether it's correct.
2. If it's correct, agree, and the refund will be adjusted.
3. If it's wrong, paid, or under appeal, disagree with reasons and proof.

Documents to keep ready

• Old intimation or assessment order
• Challan proof if paid
• Appeal or rectification acknowledgement

What your reply should cover

• Demand reference and assessment year
• Agree / disagree with reasons
• Proof attachments

What happens if you ignore it

The refund is adjusted against the demand automatically.

Frequently asked questions

Can they adjust refund if my appeal is pending?

They can propose it. Tell them about the appeal in your response. Adjustment is often limited or stayed where an appeal is pending and the required amount is paid.

I already paid the old demand.

Disagree, and attach the challan details so the demand can be closed.

Related notices

General information, not legal advice. Rules and portal paths change. Always follow the instructions in your notice and check with a CA for your specific case.