Find
If the demand is correct, choosing Demand is correct lets CPC adjust it and release whatever refund is left. If the demand is larger than the refund, the balance demand stays payable.
ITR
Agreeing to a correct demand and getting the balance refund
Updated . Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.
Provisions
Sec 245, Income-tax Act 1961 (now Sec 438, Income-tax Act 2025); Sec 220(2), Income-tax Act 1961
Analysis
Example: refund ₹22,000, old demand ₹15,000. After you agree, ₹15,000 is adjusted and ₹7,000 is paid to your validated bank account. If the demand were ₹30,000, the full refund would be adjusted and ₹8,000 would still be due, with interest under Sec 220(2) at 1% a month until paid. Agreeing early avoids delay in getting the balance refund.
Close
- Confirm the demand matches the order for that year
- Choose Demand is correct in the response
- Make sure your bank account is pre-validated for the balance refund
- Pay any balance demand through e-Pay Tax if the refund is smaller
- Keep the adjustment details for your records
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