We all file our income tax return to our best knowledge and provide all relevant documents for proof. However, when income-tax return is filed , the details provided in the Income Tax Return are cross-verified and processed by the IT dept. The dept compares the details provided with the information that is available with them. If they find any discrepancies or mistakes or any information is missing in the return then, they will treat your ITR as Defective Return and they will then issue a Defective Return notice u/s 139(9).
There are various reasons as to why a defective return notice might be issued. Here are two ways by which you might be issued a Defective Return
If you have notice any error in your income tax return after you have filed it, as per Income tax law you can correct those errors or omissions in their return by submitting a revised tax return as per Section 139(5). However, only those IT returns can be revised which have been filed within the due date.
Further, one can revise tax return any number of times, however it may increase the chances of the return being selected for scrutiny, especially if it is resulting in large refunds. Revision is allowed only if the omission was unintentional, but if its deliberately a false return, then one is liable to be imprisoned under Section 277.
To make revision process smooth, one way is not to e-verify the return – if that has been filed online which you wish to revise. This is because once a return is verified; the Income Tax Department begins processing it. Therefore, its better to correct the errors when you notice them, review your return properly and submit your revised return. You can then always e-verify the revised return.
Pointed by Income tax department
As per Section 139(9) where the Assessing Officer considers that the return of income furnished by the assessee is defective, he may intimate the defect to the assessee and give him an opportunity to rectify the defect within a period of 15 days from the date of such intimation or within such further period which, on an application made in this behalf by assessee, the Assessing Officer may, in his discretion, allow.
If the defect is not rectified within the period of 15 days or within the further period so allowed by assessing officer, then the return shall be treated as an invalid return and it will be considered as if the assessee had failed to furnish the return as per act. Accordingly the benefits of exemptions or deductions cannot be claimed as the return will be deemed to have not been filed.
However, once the defect is removed, it will be considered as original return and the return filing date will be same as date of original return. Please note that Income tax officer can also treat a return as valid even if there are defects or errors.
Income tax act does not specify errors for a return to be classified as defective. However, in general any apparent or common mistakes will render the return as defective or if there are incomplete details examples includes:
- When total presumptive income under Section 44AD is less than 8% of gross turnover or receipts, ITR-4 has to be filed. A return will be defective when the filing is made on ITR-4S instead of ITR-4.
- Tax deducted has been claimed as a refund, but no income details are provided in the return.
- Tax determined as payable in the return of income filed has not been paid.
- If tax along with interest has not been paid before filing the return. Tax challan number and other details should be filled properly.
- Part A, P and L and/or Part A BS (Balance Sheet) have not been filled.
- Where the accounts of the assessee have been audited then copies of the audited profit & loss account, balance sheet and the auditor’s report.
- Tax computed but GTI(Gross Total Income) is nil or 0
Detailed Process to Submit Revised Return or Rectify Defective Notice
- Login on to www.incometaxindiaefiling.gov.in with your User ID, Password and Date of Birth/ Incorporation
- Go to e-File
- e-File in response to notice u/s 139(9)
Assesse selects the ITR from the drop down and uploads the respective XML file and clicks on Submit. On the revised income tax return, do remember to select the option “In response to a notice under Section 139(9)”.
Assesse must click on “Submit” link under Response column for the respective defective notice number in order to submit the response. Once the response is successfully submitted, the below success page will be displayed.
For defective notice raised by CPC, the below screen will be displayed.
- If the assesse agrees with the defect i.e.assesse selects Yes under column “Do you agree with defect?”,Select ITR Form Name, Assesse needs to upload the respective return XML
- If the assesse does not agree with the defect i.e. assesse selects No under column “Do you agree with defect?”, Assesse needs to provide the remarks under column Assesse Remarks as shown in the below screen
On successful submission of the response by the assesse, the below success screen is displayed.
Withdrawal of Defective response submitted
Assesse is allowed to withdraw the response submitted for any defective return within 3 days of submission.
Assesse needs to click on Withdraw link under Response column.
Details of the submitted response will be displayed. Assesse needs agree to withdraw by checking the checkbox and click on Confirm Withdrawal button.
Once the response has been withdrawn successfully the below screen is displayed