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Section 245 of Income Tax

NITIN SABOO (344 Points)

21 November 2017

Plz explain section 245 of Income Tax

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RAJA P M ("Do the Right Thing...!!!") (127921 Points)
Replied 22 November 2017

Dear NITIN SABOO.,

It's a adjustments....

"This intimation is received when you have a tax demand pending from the IT Department and when you have claimed a refund from them in some other Assessment Year.

Section 245 of the Income Tax Act empowers the Assessing Officer to adjust refund (or a part of refund) against any tax demand which is outstanding from the taxpayer.

In simple words, the IT Department wants to adjust your refund due to you against a demand which is due from you.
This demand may pertain to an earlier assessment year.

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