Skip to main content

Income Tax Notice under Section 245

 There are a lot of taxpayers who are receiving intimation from the Income Tax Department under Section 245 of the Income Tax Act but they are often not able to understand the situation and what this actually means for them. In many cases the mere mention of some intimation from the tax department is enough to scare the taxpayer but this kind of step might require some quick action from the side of the investor and they have to pay attention to the details. There are now options to ensure that the right effect is given to the various conditions and the taxpayer does not end up suffering at the end of the day. Here is a look at the entire situation and how a taxpayer can respond to this kind of situation.

Meaning of intimation

The Income Tax Act allows the tax authorities to set off a refund that has to be paid by the tax department against some previous outstanding tax amount that the taxpayer has to be paid. However this does not mean that any adjustment can be done without the knowledge of the taxpayer. Under Section 245 this kind of adjustment can be done only after a proper notice is given to the taxpayer and they are given an opportunity of correcting any mistake that might have occurred in the raising of the demand. The intimation that is being received by the taxpayers is due to this condition wherein they are being informed that their current years refund is being adjusted against some past outstanding.

First step

The moment such intimation is received from the tax department the taxpayer has to first check the details of the previous outstanding tax demand against which the refund is being adjusted. This is significant because of the fact that it is not necessary that every past demand raised is correct. There have been a lot of cases wherein the demand raised have not been proper and hence the taxpayer does not have to pay this amount so this has to be taken care of. This will require some work on the part of the taxpayer because the previous demand can stretch back several years and to get the exact situation will require that the old details be looked at once again.

Time period

The intimation under Section 245 will also mention the time period during which the taxpayer has to respond after which if there is no reply then the adjustment would be completed. This time period is important and the earlier the reply is filed by the tax payer the better it is. In the online filing website the taxpayer will have to log in and under the e file segment they will need to go to the response to outstanding tax demand section. Here one can view the details of the demand and the reply can also be submitted here which can be under three heads. This would be that the demand is correct or it can be demand is partially correct and the third head is you disagree with the demand. There will be a way to reply to the outstanding demand but if this facility is not present then the meaning of the step is that the demand has already been finalised by the assessing officer. Since there is a specific time period that is allowed for the reply of the tax payer it is important for them to adhere to this as the facility for replying could then close which would end the matter. This is also the reason why every intimation needs to be seen immediately and then action taken in the matter.
-----------------------------------------------
Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds

Top 10 Tax Saving Mutual Funds to invest in India for 2016

Best 10 ELSS Mutual Funds in india for 2016

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. Franklin India TaxShield

4. ICICI Prudential Long Term Equity Fund

5. IDFC Tax Advantage (ELSS) Fund

6. Birla Sun Life Tax Relief 96

7. DSP BlackRock Tax Saver Fund

8. Reliance Tax Saver (ELSS) Fund

9. Religare Tax Plan

10. Birla Sun Life Tax Plan

Invest in Best Performing 2016 Tax Saver Mutual Funds Online

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

---------------------------------------------

Leave your comment with mail ID and we will answer them

OR

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

OR

Leave a missed Call on 94 8300 8300

-----------------------------------------------

Popular posts from this blog

Mutual Fund Review: Religare Tax Plan

Tax Plan is one of the better performing schemes from Religare Asset Management. Existing investors can redeem their investment after three years. But given the scheme's performance, they can continue to stay invested   Given the mandated lock-in period of three years, tax saving schemes give the fund manager the leeway to invest in ideas that may take time to nurture. Religare Tax Plan's investment ideas revolve around 'High Growth', which the fund manager has aimed to achieve by digging out promising stories/businesses in the mid-cap segment. Within the space, consumer staples has been the centre of attention for the last couple of years and can be seen as one of the key reasons for the scheme's outperformance as compared to the broader market. It has, however, tweaked its focus and reduced exposure in midcaps as they were commanding a high premium. The strategy seems to have worked as it returned a 22% gain last year. Religare Tax Plan has outperformed BSE 100...

Good time to invest in Infrastructure Funds

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   Good time to invest in infrastructure The Sensex has gained almost 10 per cent from May 15 till date, while the CNX Infrastructure Index has gained almost 17 per cent in the period. The price to earnings ( P/ E) ratio of the BSE Sensex is 18.96; for the CNX Infrastructure Index, it is 24.57. The estimated P/ E for next year is 14.04 for the Sensex. Of the 24 companies that make up the CNX Infrastructure Index, six have a P/ E higher than 20. Does this mean infrastructure is fairly valued? Or, has it run up quite a bit? According to experts, barring stray companies, the infra sector is fairly valued and it is a good time to invest. Even if some companies are facing debt restructuring problems, once interest rates come down and regulatory norms become flexible, they will start giving good re...

Stocks with a high dividend yield

Buy Gold Mutual Funds Invest Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Call 0 94 8300 8300 (India) Stocks with a high-dividend yield can provide investors additional cash flow. More importantly, it is tax-free   With April 2011 just over, the 'earnings season' is well and truly here. This is the time most companies pay out a portion of their profits as dividends to shareholders. Since dividends are tax-free, they are an attractive income source with a select class of investors, who depend on these for additional cash flow. SIGNIFICANCE A company doing well and generating profits will usually be in a position to declare dividends regularly. Hence, a key parameter one should look at whilst investing in a stock is whether the company has a good dividend record. Typically, dividend yield stocks are large-caps and generally not capital-intensive. This is suggestive of the fact that the downside risk on...

Mutual Funds: Past Performance is not just everything

Many a times your agent / distributor / relationship manager tries to push you some mutual fund schemes by enticing you with a typical sales pitch…"Sir, this scheme has generated 20% returns in the past one year." And this sales pitch often gets louder when the market conditions have been favourable. Some of the agents / distributors / relationship managers have another unique way of luring you. They say, "Sir / madam this scheme has been awarded the best scheme award in the past by a leading business channel"... And hearing all these sales talks you investors very often get attracted and sign a cheque in favour of the respective scheme.   But please ask yourself do you hear these sales talks when the capital markets turn turbulent? Why is it so that your agent / distributor / relationship manager avoids talking to you during turbulent times of the capital markets and doesn't boast about returns generated by the respective funds or awards being conferred on t...

Small Caps Funds can Boost Your Portfolio

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300 Small Caps Funds can Boost Your Portfolio    Small and mid-cap funds have given over 90% returns in the past year. No wonder, financial advisors get many enquiries about their prospects. One set of investors wants to know whether it is time to get out of these funds. The second group wants to know whether they can still expect similar returns in the coming days. According to experts, individual investors should shut the noise out and focus on their portfolio. If you have exceeded your allocation target to small and mid-cap funds, bring it back to the original target. If you are looking to invest, make sure that your exposure to them doesn't exceed 30-40% of your total equity portfolio. All equity portfolios should have 60% exposure to large-cap funds and based on their risk appe...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now