SECTION-245

[sraVAN MAIDAM]

I WANT EXPLANATION REGARDING SECTION-245, OF INCOME TAX ACT

[Ganeshan Kalyani]

Set off of refunds against tax remaining payable.

245. Where under any of the provisions of this Act, a refund is found to be due to any person, the [Assessing] Officer, [Deputy Commissioner (Appeals)] ,Commissioner (Appeals) or Principal Chief Commissioner or] Chief Commissioner or Principal Commissioner or Commissioner, as the case may be, may, in lieu of payment of the refund, set off the amount to be refunded or any part of that amount, against the sum, if any, remaining payable under this Act by the person to whom the refund is due, after giving an intimation in writing to such person of the action proposed to be taken under this section.

AI Summary

Set off of refunds against outstanding tax liabilities permitted, subject to written intimation to the taxpayer.
Section 245 allows an authorised tax official to set off a refund, wholly or partly, against any sum remaining payable under the Act by the person entitled to the refund, as an alternative to paying the refund. The power is exercisable by specified assessing and appellate officials, who must give an intimation in writing to the person before taking the proposed action.