Answer

1. F

   Facts

   When a rectification or appeal order reduces a demand, the department ledger must be updated by the officer. Until then the old amount can still appear and be picked for set-off.

2. P

   Provisions and law

   • Sec 245, Income-tax Act 1961 (now Sec 438, Income-tax Act 2025)Refund can be set off against an earlier demand only after a written intimation to the taxpayer
   • Sec 154, Income-tax Act 1961 (now Sec 287, Income-tax Act 2025)A mistake apparent from the record can be rectified, on request or by the officer
3. A

   Analysis

   In the response, choose Disagree and the reason that the demand is reduced by rectification or appeal, then quote the order number and the reduced amount. Example: an original demand of ₹60,000 was cut to ₹8,000 by a Sec 154 (now Sec 287) order, but the portal still shows ₹60,000. If you agree to adjust only ₹8,000, say so as partly correct. Attach the order so the officer can update the record quickly.

4. C

   Conclusion

   1. 1Download the rectification or appeal order
   2. 2Note the revised demand amount
   3. 3Respond: partly correct for the revised amount, or Disagree with reason demand reduced
   4. 4Ask the jurisdictional officer to update the demand ledger
   5. 5Check that the refund released matches the revised figure

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.