Respond to I-T notice on time or risk refund adjustment against tax demand

If AO doesn't respond within 21 days, CPC may release refund, or adjust it partially based on taxpayer's consent

Have you received a notice under Section 245 of the Income Tax (I-T) Act? If so, consult your chartered accountant and respond promptly. The Directorate of Income Tax (Systems) has now set a 21-day time limit for an assessee to respond to an intimation under Section 245 (1) of the I-T Act, issued by the Centralised Processing Centre (CPC).

Vipul Jai, partner, PSL Advocates and Solicitors, says, “The time limit set for assessees aligns with the 21-day response period fixed for assessing officers (AOs) to respond to an assessee’s grievance. These timelines will facilitate prompt responses from both sides and