Refund on Hold - Section 245

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Hi,

In September 2024, I received an excess refund due to a gap between the processing of the original return and the revised return. As soon as the refund was credited, we paid the excess amount of approximately ₹74,000 via challan under the minor head Self Assessment Tax (300).

However, after a few days, a demand for the same amount was raised on the Income Tax portal. We responded to the demand by selecting “Demand is correct” and mentioned that the amount had already been paid. We also raised a grievance, after which CPC acknowledged the issue and informed us that the demand had been nullified.

Despite this, the Income Tax portal still shows the demand under Pending Actions, along with interest. As a result, my latest income tax refund is now on hold under Section 245, and I have received an email stating that the refund will be adjusted against the outstanding demand.

I have raised another grievance and am currently awaiting a response. However, the notice under Section 245 states that if no response is received within 21 days, it will be deemed as accepted and the refund will be adjusted against the outstanding demand.

What to do now to get quick response?

Replies (2)

Approach your  jurisdiction A.O and submit details with challan copy  and CPC intimation  conformation of demand paid

Try rectification request


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