Intimation u/s 245 is issued proposing adjustment of refund

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If your Income Tax refund for AY23-24 is on hold with a Section 245 intimation, it means the tax department proposes to adjust your refund against an outstanding demand. You can check the IT portal for details on this demand, which can be raised for previous years and adjusted against future refunds without a time limit. It's advisable to verify the correctness of the demand before deciding on the next steps.

Ankush Srivastava

Ankush Srivastava (Querist)
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24 October 2023 Hi,
My AY23-24 refund is kept on hold with the message - "Refund kept on hold,Intimation u/s 245 is issued proposing adjustment of refund towards outstanding demand.
Sep 6, 2023". I checked the Outstanding Demand section and can see an action pending. How can I verify whether the demand is correct or not? Also, the demand is for AY 2021, so why is it being levied now given I had cleared my ITR in previous years? Is the simplest way to get the current year's refund to accept the demand and proceed? But then how will it guarantee that whenever someone files an ITR it is correct, and I can receive an outstanding even after 50 years?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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25 October 2023 Check the AY 2021 ITR filling and intimation. See it online in IT portal.
Any demand not paid will be adjusted against refund no time limit.

Check the demand is right.

Ankush Srivastava

Ankush Srivastava (Querist)
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25 October 2023 Thanks for the clarification.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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25 October 2023 You are welcome...
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