22 October 2026
We filed a return and claim of ₹50,000 for our client for A.Y. 2026-27. We have now received an intimation under Section 245, proposing to adjust this refund against an outstanding demand of ₹1,20,000 from previous years. There won't be any issue if the refund is adjusted for the client.Is it mandatory to file a response within 21 days?
22 October 2026
Yes, filing a response to an intimation under Section 245 within the 21-day timeline is mandatory, even if the client consents to the refund adjustment.
Log into the income tax portal and submit an explicit response agreeing to the ₹50,000 refund adjustment against the ₹1,20,000 past demand, leaving a remaining demand of ₹70,000 to be cleared.