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Sec 245

Kanchan (Associate) (47 Points)

03 January 2016

Hi All, For AY 2014-15, I received a demand of Rs.48000 which I duly paid in the same year.Now for AY 2015-16,I filed a return with a claim of Rs 50000. In response to the return, I have received a notice under Section 245 mentioning that refund for AY 2015-16 will be adjusted against demand of AY 2014-15.The demand I paid in AY 2014-15 can be seen in Form 26AS.Can you please advice for below questions: 1.How to raise a rectification request for this as online portal does not give the option to respond to demand under section 245? 2. Since this demand has been raised by CPC,do I need to contact any AO? It would be great if you could provide your guidance at the ealiest.

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9 Replies

CA Vap Patel (Practice) (1205 Points)
Replied 03 January 2016

Dear Kanchan,

You need to rectify demand for AY 2014-15. Credit of Rs. 48,000/- is not yet given to you. Since form 26AS is showing the credit but same has not yet adjusted against your demand, you only have to do simply one thing. Login to incometaxindiaefiling.gov.in>Go to Your “Dashboard”. You can see “My Pending Action”. You can see your pending demand of Rs. 48000/- there. On right side there is submit button. Click on it and select totally disagree with demand. Submit your proof of challan. Once that done your demand will get automatically removed( This process will take may be month or more)

Once AY 2014-15 matter get resolved your refund for AY 2015-16 will get credit to your account without any adjustment.

Kanchan (Associate) (47 Points)
Replied 03 January 2016

Hi Thanks for your response. For Rs 48000 there is only view button. Therefore there is no option to disagree with the demand. Can you please advice Thanks

Kanchan (Associate) (47 Points)
Replied 03 January 2016

Hi Thanks for your response. For Rs 48000 there is only view button. Therefore there is no option to disagree with the demand. Can you please advice Thanks

CA Vap Patel (Practice) (1205 Points)
Replied 03 January 2016

Ok. Have they issued Refund for AY 2015-16 of Rs 50,000/- after adjustment of demand of Rs 48,000?

Kanchan (Associate) (47 Points)
Replied 03 January 2016

No, they have not issued the refund and issued notice under section 245 mentioning that we have not paid the demand raised of Rs.48000. In short they have not considered the amount we paid last year and have issued notice to nullify both.However we can see the amount paid in our 26As

CA Vap Patel (Practice) (1205 Points)
Replied 03 January 2016

OK. Do one thing write letter to your AO. he will get your work done. Ideally there should be submit button. But not worry. AO can also get this done. Though notice is issued from CPC, Still you can approach AO for rectification Regards

S. Shiroor (Others) (1207 Points)
Replied 03 January 2016

1) Rectify ur AY 2014-15 return by adding the 48K tax in the first option. "the assesse is recfying for Tax credit mismatch.only

2) Write in greivance of AY 2014- 15 that the return is rectified and demand is made nil

As soon as you pay tax against demand one should rectify the return and take that TDS/TCS/TI and submit

I hope this helps. .

Kanchan (Associate) (47 Points)
Replied 04 January 2016

Thanks S.Shiroor for your response Just one clarification required. I have submitted bith rectification return and grievance under category Demand.So please confirm will this be treated as disagreement to the notice received under section 245 as it was mentioned that we have to revert within 1month if receipt of notice which will b completed on 07.01.2016 in our case Please let me know if I need to do anything else at the earliest

Shyam C.Pujara (Student (C.A Final)) (177 Points)
Replied 09 January 2016

Dear Kanchan,

As per my personal experience complaints under greivances do not have any fate for what ever the reason may be.... solution give by CA. Vap Patel is the more fruitfull