Refund held or adjusted (section 245) — NRI
What it means
Your refund is being adjusted against an earlier demand, or is held pending a response. Section 245 requires the department to give you notice before adjusting.
What to do
- Open the e-filing portal: Pending Actions → Response to outstanding demand.
- Agree, or disagree with reasons and evidence (already paid, rectification pending).
- Validate the NRO bank account for refund credit.
Deadline: Respond within the period in the intimation (commonly 30 days).
Documents you will need
- Demand notice
- Challan copies
- Earlier return and intimation
Have this notice? Upload it for a free explanation of your own case. NRI case pack — $39.
Old section 245: new number [check] under the Income-tax Act 2025. Section numbers refer to the Income-tax Act 1961 / CGST Act 2017; the Income-tax Act 2025 renumbers income-tax sections from 1 April 2026 — the notice shows the applicable number. Checked by the founder on 16 Oct 2026.