Section 245 Intimation Reply Format 2026
To,
{{officer_designation}}
Date: 1 October 2026
Response to Intimation under Section 245 of the Income-tax Act, 1961 — Objection to Proposed Adjustment of Refund against Outstanding Demand
Assessee: {{client_name}} | PAN: {{client_pan}}
Ref: Intimation dated
Respected Sir / Madam,
1. A refund of ₹ {{refund_amount}} has been determined in the assessee's case for AY {{assessment_year}}. By the intimation cited above, it is proposed to set off this refund against demand(s) aggregating ₹ {{demand_amount}} shown as outstanding for earlier year(s).
2. The assessee objects to the proposed adjustment to the extent shown below. The demand-wise position is:
A. Demand-wise position
| Sl. | AY | Demand reference no. / section | Date raised | Demand as per portal (₹) | Accepted (₹) | Disputed (₹) | Ground (see Part B) |
|---|
| 1 | ____________ | ____________ | ____________ | ____________ | ____________ | ____________ | ____________ |
| 2 | ____________ | ____________ | ____________ | ____________ | ____________ | ____________ | ____________ |
| 3 | ____________ | ____________ | ____________ | ____________ | ____________ | ____________ | ____________ |
| Total | | | {{demand_amount}} | ____________ | ____________ | |
B. Grounds of objection
(a) Demand already paid — the demand at Sl. No. ____________ was paid by challan dated ____________ (BSR code ____________, challan serial no. ____________, ₹ ____________). The challan has not been credited against the demand; a copy is enclosed.
(b) Rectification pending or allowed — a rectification request under section 154 was filed on ____________ (reference no. ____________) for the demand at Sl. No. ____________, which arises from ____________ [e.g. TDS credit not allowed / double addition / challan not credited]. The request is ____________ [pending / allowed by order dated ____________ but not yet given effect to].
(c) Appeal pending and demand stayed — the demand at Sl. No. ____________ is disputed in appeal filed before the ____________ on ____________ (acknowledgement no. ____________). Stay of demand was ____________ [granted by order dated ____________ on payment of ₹ ____________, which has been paid / applied for on ____________ and is pending]. Adjustment of the refund beyond the amount on which the stay was granted would defeat the stay.
(d) Appeal decided in the assessee's favour — the demand at Sl. No. ____________ stands deleted / reduced by the order of the ____________ dated ____________. The order giving effect to the appellate order has not been passed; once passed, no demand survives.
(e) Demand never served — no order or notice of demand under section 156 for the demand at Sl. No. ____________ has been served on the assessee. The assessee requests a copy of the order and the demand notice, and proof of service, so that it may pursue its remedies.
(f) Demand incorrect or duplicated — ____________ [e.g. the same demand appears twice under different reference numbers; the demand ignores a revised return processed on ____________; interest has been computed on a demand already paid].
- Drafting hint: keep only the grounds that apply and tie each one to a line of the table in Part A. The officer verifying the response works demand by demand.
- Drafting hint: the response must also be submitted on the e-filing portal against each demand — "Demand is correct" or "Disagree with demand (either in full or part)" with the reason and the challan, rectification or appeal particulars. Use the same reasons there as here.
- Drafting hint: old demands that surface only through a section 245 intimation are often ones the client never saw. Ask for the order and proof of service before accepting anything.
C. Submissions
3. Section 245(1) permits a refund to be set off against a sum remaining payable only after an intimation in writing of the action proposed to be taken. The purpose of the intimation is to allow the assessee to show that the sum is not payable, and the objection is required to be considered before the adjustment is made. The assessee requests that this response be referred to the jurisdictional Assessing Officer for verification and correction of the demand(s) before any adjustment.
4. To the extent of ₹ ____________ at Sl. No(s). ____________, the assessee accepts the demand and has no objection to its adjustment against the refund. [Delete if no part of the demand is accepted.]
PRAYER
5. The assessee prays that: (i) the disputed demand(s) of ₹ ____________ be not adjusted against the refund for AY {{assessment_year}}; (ii) the outstanding-demand record be corrected by giving credit for the payments, rectification and appellate orders referred to above; and (iii) the refund of ₹ ____________ be released together with interest under section 244A.
Thanking you,
Yours faithfully,
For {{client_name}}
_______________________________
Authorised Signatory
Address: {{client_address}}
Encl.: Copy of the intimation u/s 245; challans; rectification request and order; Form 35 / Form 36 acknowledgement; stay order; appellate order; ____________
