Find
The department can set off your refund against tax outstanding for another year, after informing you. The intimation shows the demand and the adjustment.
ITR
Income tax refund adjusted against an old demand
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 156, Income-tax Act 1961 (now Sec 289, Income-tax Act 2025)
Analysis
Check Pending Actions > Response to Outstanding Demand for the old demand. If the demand is correct, the adjustment settles it. If it is wrong, for example a TDS credit was missed, respond that you disagree with reasons and file rectification. A wrongly adjusted refund can be paid back after the demand is corrected.
Close
- Check the intimation and the old demand details.
- Open Response to Outstanding Demand.
- Agree or disagree with reasons.
- File rectification if the demand is wrong.
Connect now
A Savvy replies in minutes.
Fixed price before you pay. Your Savvy is paid only after you accept the work.
General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.