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Apr 16, 2025
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Don’t be surprised if you get lesser income tax refund this year, the income tax dept is adjusting past dues against this year’s refund
The Income Tax Department has sent emails to taxpayers informing them that since their income tax return (ITR) has been pending for assessment/ re-assessment, their tax refund amount will be withheld till the time the tax officer makes a detailed analysis of it. The said email also mentions that Section 245 (2) will be the charging section for such an action. In simple words, Section 245 gives the income tax department power to adjust your present year’s tax refund with any year’s tax demand amount. There is no limitation period for Section 245 cases.
In this same context, on March 11, 2025, the deputy director of Income Tax has sent many emails to taxpayers mentioning that, “Since there are pending assessment / re-assessment proceedings in your case, the refund release/withhold will be based on the response provided by Jurisdictional Assessing Officer (JAO) in accordance with the provisions of section 245(2) of the Income Tax Act, 1961.”
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