What a section 245 notice is.
When you are due a refund for one year and the department shows a demand outstanding for another, it can adjust the refund against the demand. It must first send an intimation and give you a chance to respond, usually within 30 days, on the e-filing portal.
From 1 April 2026 the Income-tax Act, 2025 has renumbered these provisions. Notices for tax years before 2026-27 still refer to the Income-tax Act, 1961 sections, which is why this page uses them. We check which Act applies to your notice.
How to respond.
| Situation | Response |
|---|---|
| Demand is correct and unpaid | Agree; the refund is adjusted |
| Demand was already paid | Disagree, with challan details |
| Demand is wrong, for example TDS not credited | Disagree and request rectification of the old year |
| Demand is under appeal with a stay | Disagree, with appeal and stay details |
| Only part is correct | Partly agree, with reasons for the rest |
How we help.
The old demand
Order, computation, TDS credit and payments.
On the portal
Agree, disagree or partly agree, with evidence.
The root cause
Rectification, appeal or demand notice response for the old year.
Until the refund arrives
Tracking the refund and any interest due.
Why clients trust us with notices.
We read the notice, the AIS and your return together before advising.
Deadlines tracked from the day you send us the notice.
What the notice means, what is at stake and what we recommend.
Most proceedings are handled online, so you never need to travel to India.
Replies and representation by Chartered Accountants.
A written scope and fee before we start.
Refund protection for clients across the UK.
We handle Indian income tax notices for NRIs, returning Indians and UK-owned businesses throughout the UK. Faceless proceedings are online, so it makes no difference where you live.
London
South East
Midlands
North of England
East and South West
Scotland, Wales, NI
Section 245 FAQs.
Refund held against an old demand?
Send us the intimation. We will check the demand and protect your refund.
This page is general guidance based on the Income-tax Act, 2025 and the rules and return forms as they stand. It is not legal or financial advice for your situation. Forms, eligibility and due dates can change each year, so please check with us before filing.