Income Tax Department Launches Demand Facilitation Centre (DFC) to Assist with Pending Tax Outstanding Demands

Key Takeaways:

1. The DFC is a free help centre launched by the Income Tax Department to assist individuals with pending tax outstanding demands.

2. It operates in specific states and provides assistance related to section 245 (of Income Tax Act, 1961) income tax notices.

3. Individuals can approach the DFC for help by calling their toll-free number or writing an email, without the need to share sensitive information.

4. The DFC helps individuals understand the reasons behind receiving section 245 (of Income Tax Act, 1961) income tax demand notices and may mediate with the Assessing Officer (AO) if necessary.

The Income Tax Department has launched a facility called the Demand Facilitation Centre (DFC) to help individuals solve their pending tax outstanding demand issues faster. The DFC agents are available to help individuals understand the reason behind the tax notice and suggest ways to solve it. They may also connect individuals with the Assessing Officer (AO) directly in some cases.

Section 245 (of Income Tax Act, 1961)

Section 245 (of Income Tax Act, 1961) empowers the income tax department to adjust past years’ income tax outstanding dues with the present year’s income tax refund. This can lead to situations where the Income-tax department sends a section 245 (of Income Tax Act, 1961) notice for a very old income tax return (ITR), which individuals may not remember. To help mitigate this issue and solve the pending section 245 (of Income Tax Act, 1961) income tax notice cases faster, the Income-tax department has launched the Demand Facilitation Centre (DFC) in certain states to help individuals in certain conditions for free.

Conditions where the DFC may be able to help

The DFC may be able to help in the following conditions:

1. Where the mistake is apparent from the records: For example, if a salaried individual paid the correct amount of capital gains income tax via e-pay tax option but put the wrong challan number at the time of ITR filing, resulting in an income tax demand. In this case, the DFC can help if the individual sends a scanned copy of the tax paid challan to the DFC agent.

2. Where rectification rights of section 245 (of Income Tax Act, 1961) notice are with the CPC: If the rectification right is with the Centralized Processing Centre (CPC), then the DFC agents can help. However, if rectification right is with the AO, then the DFC agents cannot help.

Process for approaching DFC

According to the Income-tax department, DFC is live in Karnataka, Punjab, Haryana, Himachal Pradesh, Tamil Nadu, Goa, Chandigarh, Puducherry, Ladakh, Jammu and Kashmir, Delhi, and Mumbai. If a taxpayer has been served with a section 245 (of Income Tax Act, 1961) income tax demand notice, they might receive a call from the DFC or an email from taxdemand@cpc.incometax.gov.in. If the call and email are yet to be received, the individual can approach the DFC by calling their toll-free number on 1800 309 0130. It’s important to note that individuals do not need to share their ITR e-filing login credentials or any sensitive information to get assistance from the DFC.

How will DFC help for dealing with section 245 (of Income Tax Act, 1961) income tax notice?

The DFC is a free help centre where agents of the Income-tax department will help individuals solve their issues relating to section 245 (of Income Tax Act, 1961) income tax demand notice. Here’s how DFC will help:

1. Understand the section 245 (of Income Tax Act, 1961) income tax notice: DFC agents will have details of the section 245 (of Income Tax Act, 1961) income tax notice and why it was sent, i.e., due to which discrepancy or error.

2. Mediate and help: DFC agents would ask for records pertaining to the reason for which the section 245 (of Income Tax Act, 1961) income tax demand notice was issued. If the individual disagrees with the notice, they would have to email copies of the records which can help substantiate/prove the reason behind disagreeing.

3. Connect with Assessing officer (AO): DFC agents may connect the individual or their appointed CA directly to the AO via a conference call if the need arises.

What happens if an individual wants to read the actual section 245 (of Income Tax Act, 1961) notice?

If an individual cannot find the actual section 245 (of Income Tax Act, 1961) income tax demand notice except only an email intimation about such a notice, they should approach the jurisdictional assessing officer (AO) and request for the actual section 245 (of Income Tax Act, 1961) intimation notice document. If the intimation or the demand is not being generated by the assessing officer, then they should write a letter to the Grievance cell and keep all communication records handy.

FAQ

Q1: What is the Demand Facilitation Centre (DFC)?

A1: The DFC is a facility launched by the Income Tax Department to assist individuals in resolving pending tax outstanding demands, particularly related to section 245 (of Income Tax Act, 1961) income tax notices.

Q2: How can individuals approach the DFC for assistance?

A2: Individuals can contact the DFC by calling their toll-free number on 1800 309 0130 or writing an email to taxdemand@cpc.incometax.gov.in.

Q3: What kind of assistance does the DFC provide?

A3: The DFC helps individuals understand the reasons behind receiving section 245 (of Income Tax Act, 1961) income tax demand notices and may mediate with the Assessing Officer (AO) if necessary.