Income Tax News: The Income Tax Department launched the Demand Facilitation Centre (DFC) in a few states to expedite the resolution procedure for Section 245 income tax demand notices. The DFC is a tool designed to help people who are having trouble with older income tax return (ITR) data. It does this by using the income tax refund from the current year to settle any outstanding balances. The goal of this project is to address the widespread problem of people getting notices for long-forgotten tax returns.
Utilizing Current-Year Refunds for Settlement
The income tax department is able to use the current year’s income tax refund to settle past-due income tax obligations under Section 245 of the Income-tax Act, 1961. When people receive Section 245 income tax demand notices, the DFC intervenes because they might find it difficult to remember specifics from previous returns. In order to facilitate the resolution process, the DFC operates in multiple states, such as Punjab, Haryana, Karnataka, and others.
Evident Errors in Documents
When mistakes are apparent from the records, the DFC can assist people. For example, challan number discrepancies during ITR filing or incorrect TDS amounts resulting from bank errors can be promptly resolved by submitting the necessary documentation.
Corrective Action Rights under the CPC
The DFC can help if a person’s Section 245 income tax demand notice mentions that they have the right to rectification with the Centralised Processing Centre (CPC). On the other hand, people need to speak with the Assessing Officer (AO) directly if they have the right to have the error corrected.
How to Approach DFC
The DFC may get in touch with people who receive Section 245 income tax demand notices by phone at (+91 8216671200) or email at taxdemand@cpc.incometax.gov.in. As an alternative, people can proactively contact the DFC by calling 1800 309 0130, which is a toll-free number. Importantly, DFC assistance does not require personal login credentials, banking passwords, or one-time passwords.
DFC Resolution Process
Understanding Section 245 Notices: DFC representatives will explain any inconsistencies or mistakes in the Section 245 income tax demand notice by going over the specifics and motivations behind it.
Mediation and Assistance: If people object to the notice, they can provide documentation to back up their claims. Agents from DFC will determine if the error is evident and solvable using the records that are currently in the system.
Connecting with Assessing Officer: To expedite communication and document submission, DFC agents can arrange a conference call between the individual or their designated Chartered Accountant (CA) and the Assessing Officer.
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