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Step by Step procedure to handle notice received u/s 245 of Income Tax

Income tax department started sending reminder notice u/s 245 of Income tax Act 1961. In our other article “Did you receive communication on Arrear Demand Notice u/s 245 from Income Tax Department?” We have explained why CPC has started sending email notice u/s 245″.

In this article we tried to explain step by step procedure to handle notice received u/s 245 of income tax act.

Step 1: Ascertain nature of Outstanding Demand:

The details of the outstanding demand can be known by logging into www.incometaxindiaefiling.gov.in with your user id and password -> Go to ‘e-file’ tab-> Response to outstanding demand.

Step 2: Check who uploaded demand:

In the section “Response to outstanding demand” Check who uploaded demand which is appearing under “uploaded by”. Demand amount either uploaded by Central Processing Centre (CPC) or jurisdictional Assessing Officer (AO). First of all you need to understand how department determined your tax liability before you proceed anything further.

Step 3: File rectification application :

If Demand is uploaded by CPC follow below steps

  • Search your email box for intimation received u/s 143(1) from CPC subject line looks something like this “Income Tax Return Status for PAN AHUxxxxx1F A.Y. :2009-10
  • If you don’t find intimation, you can make request for intimation for the assessment year for which demand exists. For online request Log Into income tax ePortal, go to the section My Account > Request for intimation u/s 143(1)/154.
  • The intimation u/s 143(1) will have two column, (a) the tax determined as per the return filed by you (b) the tax determined by the department.  Compare two column to ascertain the reason for demand (Read more at : Intimation u/s 143(1) of Income Tax Act)

If Demand is uploaded by AO follow below steps

  • Contact your Assessing Officer. To know the details of your Jurisdictional AO, please log on to https://incometaxindiaefiling.gov.in and click on “Know Your Jurisdictional AO” under “SERVICES” menu. The AO is a person who is having jurisdiction to process your income tax return.
  • If place of your Assessing officer is different from the city where you are presently or permanently residing, you may have to request for PAN transfer.
  • Visit concerned officer and find out the reason for demand.
  • If you are not agreeing with the demand, file application for rectification u/s 154 of income tax Act along with documentary evidence in support of your claim.

Step 4: Submit Online Response:

After submitting application for rectification to CPC/AO, you need to submit online response. If you fail to respond to the demand within 30 days from the date of receipt of notice u/s 245, department will adjust demand with the refund due to you.

  • Go to ‘e-file’ tab-> Response to outstanding demand-> Submit response -> select the appropriate category for disagreement.
  • After selecting the appropriate category provide the required details and submit. This will be reviewed by the Department.

Read: Get answer to Income Tax Refund related queries

Step 5 (optional) : File Online Grievances :

If you are not satisfied with processing of Original/rectification return by Central Processing Center (CPC) you have option to file online grievances. The facility is provided to the assessee to submit Grievances relating to the CPC in the e-Filing portal. After Login, select Helpdesk –> Submit Grievance–> CPC then from the drop down select Assessment Year, category and sub category of the grievance. (Read more atSubmit online grievance relating to CPC)

Step 6 (Optional):  Income Tax Ombudsman:

if you are not satisfied with the action taken by the CPC/AO, you have another option to file compliant to income tax ombudsman. (Read more at: Do you know about Income Tax Ombudsman?)

Post your queries in Forum to get answer from our expert.

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About CA Prakash Chartered Accountant Bangalore

CA Prakash Chartered Accountant Bangalore
CA Prakash is a practicing chartered accountant and partner in Bangalore -based CA Firm. For further information or query, please email it to team@simplifiedlaws.com
  • sushil singla

    I am working in PSU Bank. I have deducted TDS and filed for March 2016. Some of customers who were corporate has been filed as non-corporate. Now TDS is not reflecting in deductee`s 26 AS form. How I can make amendment?

  • MANPREET BEDI

    Sir, I had filed return for 2008-09, AY 2009-10. However, in original return I made mistake, i took entire salary without claiming deductions, however the same were in my Form 16. The same was rectified by filing REvised Return in March 2011. Thereafter Income Tax Office issued me Notice asking for delay in filing the return. I replied to them informing that that Prima Facie there was error in Original Return and REvised Return has been filed and with the letter i attached all the documents Original REturn, Revised Return, Form 16. During all these years, there was no communication, no CPC has issued me Notice. Please advise what to Do. The same has been uploaded by AO. I have got all the proof. Should I write to them or simply meet and show the letters duly acknowledge by Income Tax office. Please advised. Thanks

  • Krantikumar R Kantak

    My wife received sms stating respond step by step to our notice under section 245. But we have not received any notice by post/courier/e mai till date. What should done in this respect ?

    • simplifiedlaws

      You can login to efiling portal and file online request for intimation u/s 143(1). You will get intimation by mail within a weeks time and find out reason for the difference.

  • Shyam Shrivastav

    Useful information. Thanks

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