Refund Adjustment Notice · Panaji, Goa
Your income tax refund is being adjusted against an old demand? Our Chartered Accountants in Goa review the Section 245 notice, verify the validity of the outstanding demand, file your objection within the 30-day window, and pursue resolution of incorrect or time-barred demands standing in the way of your refund.
Overview
Under Section 245, the Income Tax Department can adjust a current year's refund against any outstanding tax demand from a prior year — but only after giving you notice and an opportunity to object. If the underlying demand is disputed, wrongly computed, already paid or time-barred, you are entitled to file an objection. Ignoring the notice results in the refund being permanently adjusted, even if the demand itself is invalid.
This service works closely with our Section 143(1)(a) notice response and Section 147 income escaping assessment services for comprehensive income tax notice management.
What's covered
End-to-end notice management from receipt to resolution.
Get a fixed-fee quote →Tracing the origin and legitimacy of the outstanding demand that the department proposes to adjust against your refund.
Cross-checking whether the demand has already been paid or partially satisfied and is incorrectly appearing as outstanding.
Preparing a detailed objection to the proposed refund adjustment with documentary support.
Filing the objection online through the income tax e-filing portal within the 30-day notice period.
Pursuing rectification or appeal of the underlying demand if it is incorrect, time-barred or excessive.
Tracking the refund status after the objection and escalating to the AO if the refund is still delayed.
Our process
We analyse the 245 notice and trace the outstanding demand it refers to.
We check whether the demand is valid, paid or disputable.
We draft and submit your objection on the portal within 30 days.
We follow up until the refund is released or the demand is resolved.
Frequently asked questions
A Section 245 notice informs you that the Income Tax Department proposes to adjust your current year's income tax refund against an outstanding tax demand from a prior year. Before making this adjustment, the department is legally required to give you prior notice and an opportunity to object within 30 days.
Valid grounds include: the demand has already been paid (with challan proof); the demand is under appeal and stayed; the demand arises from an erroneous assessment that has been rectified or set aside; the demand is time-barred for recovery; or there was no prior notice for the original demand. We verify each ground systematically.
You have 30 days from the date of the notice to file your response on the income tax e-filing portal. If no response is filed within this period, the department will proceed to adjust the refund against the demand. Do not let this deadline pass without taking action.
If the underlying demand is valid and unpaid, you may consent to the adjustment or pay the demand directly. In that case, the refund will be reduced by the demand amount and the balance (if any) released to you. We advise on whether acceptance, payment or objection is the right course in your situation.
Yes, in some cases. If the demand is under appeal and the appellate authority has granted a stay, the department should not adjust the refund. You can also apply for a stay of the demand to get the refund released pending resolution. We handle stay applications alongside the 245 objection where relevant.
The Income Tax Act has limitation periods for recovery of tax demands. If the demand is very old and recovery is time-barred, you have grounds to object to the adjustment. We check the age and status of the demand and raise the limitation defence if applicable.
If the adjustment has already been made but the demand was invalid, you can file a rectification under Section 154 or take up the issue in appeal. Reversing a completed adjustment is possible but takes longer — which is why filing an objection before the 30-day deadline expires is always the preferred course.
Contact N D Savla & Associates in Panaji, Goa as soon as you receive the notice. We verify the demand, prepare your objection and file it on the portal within 30 days — protecting your refund from being adjusted against an invalid or disputed demand.
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Book a free consultation with a qualified Chartered Accountant in Goa. We'll protect your refund and resolve the outstanding demand — no obligation.