Notice u/s 245

Hi Priti,

This is a common issue where the IT department shows tax as payable despite your payment and then levies interest and adjusts refunds.

Here’s what you can do:

Steps to Handle Notice u/s 245 and Interest Dispute:

1. Verify Payment Status Online:

   • Check your Form 26AS and challan status on the income tax portal to confirm that the payment for AY 2022 is properly reflected.

2. Response to Notice:

   • Since you have already responded with payment proof (challans), make sure you submitted it via the e-Proceedings portal or as specified in the notice.

   • Keep a copy of acknowledgment of submission.

3. Rectification Request:

   • You can file a rectification application u/s 154 online on the e-filing portal explaining that tax was paid, attaching challan details.

   • Request correction of the demand and withdrawal of interest.

4. Follow Up with Assessing Officer (AO):

   • If there is still an issue, consider sending a written request or visiting the AO for clarification.

   • Sometimes, mismatch in challan details or data entry causes this problem.

5. Adjustment of Refund:

   • If the department has adjusted the refund against the disputed demand, but you are confident about payment, raise the issue in rectification and request interest waiver on that amount.

Important Tips:

• Always keep payment receipts and challan numbers handy.

• Communicate clearly with IT department citing exact challan details and dates.

• If you are unsure, consider professional help from a tax consultant.