Demand under section 245 of income tax act

An Assessee has filed ITR-1 for AY 2014-15 online for first time. He has got salary and pension during the financial year. His employer deducted TDS and deposited the same which is reflecting in Form 26AS. He also paid Self-Assessment Tax for that year through online. His return has been processed and CPC has raised demend of Rs. 1,170/- under section code 1431a and date of notice under section 245 issued. But till date, no intimation has not received from CPC in his mail. In his ITR-1 income details , he mentioned sum up of salary & pension amount (Rs. 4,24,751/- )but in TDS page of ITR under the head 'Income chargeable under the salaries' he only mentioned salary portion (Rs. 3,65,325/-) not pension amount. My quarry is, for this reason, CPC has raised demand U/S 245 ? If not, for what reason they raised demand? Now, what the Assessee will do?

Thanks in advance

Replies (4)

Hi Kaushik,

Sec 245 talk about Setting off of refund against tax payable. Therefore demand of AY 14-15, must have been set off against the refund of earlier AY (pending disbursement). Check the Order, to check the AY against which demand of AY 14-15 is Set-off

But Mr. Manoj, no order has been sent by CPC till date. I cann't understand that why demand is raised for AY 2014-15. Before filing of return, he has paid all taxes. 

Kaushik,

The intimation will come in due course. Generally after 4/5 days of generation. If it is not coming lodge an online request. The demand might arise for many reasons like TDS mismatch, levy of interest under section 234B, 234C.

Also verify if there are any outstanding demands for earlier years updated in the portal even if the assessee filed paper ITRs earlier.

Thanks,

Kindly see your demand outstanding column in income tax site.

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