ITR
Respond before a refund is adjusted
Updated . Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.
Facts
Before adjusting, the department sends an intimation and gives you a chance to respond. If you do not respond, it may adjust the refund.
Provisions and law
- Sec 245, Income-tax Act 1961 (now Sec 438, Income-tax Act 2025)Refund can be set off against tax due for another year after intimation to the taxpayer.
Analysis
Go to Response to Outstanding Demand and choose whether the demand is correct, partly correct or not correct, with reasons. If you have an appeal pending or a rectification filed, give those details. This can stop or limit the adjustment.
Conclusion
- Open the intimation and note the demand.
- Respond under Response to Outstanding Demand.
- Attach appeal or rectification details if any.
- Track the outcome.
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Income tax refund not received, status check and refund reissue request
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