Defective Returns

Many a times we noticed that, CPC has raised intimation stating the return filed by the assessee is considered as defective return as per section 139(9) of the Income Tax Act. Hence today, through this article I will give some major reason because of which your return can be considered as defective by the CPC, so that you can avoid these while filing your return of income.

Assessees are requested to avoid errors mentioned below which are among the top reasons for the return to be classified as defective:

1.   ITR 4 – The assessee has not filled Part A P&L or Balance Sheet or both and  gross receipts as per and has entered a positive value in Schedule BP serial no1. This is the single largest reason for returns being classified as defective

2.   ITR 4 – P&L “Sales/Gross receipts of business or profession” is greater than 60 lakhs and AUDIT INFORMATION not completely filled.

3.  ITR 4 – has been filed but presumptive income u/s 44AD is less than 8% or 6% of Gross Receipt or as per section 44ADA is less than 50% of Gross Receipt

4.   ITR 4 – has been filled but Code mentioned under Nature of Business are incorrect codes.

5.   ITR 1- Tax Deducted as per Schedule TDS 1 is greater than GTI (Gross Total Income)

6.   ITR 1- Tax Deducted as per Schedule TDS 2 is greater than GTI (Gross Total Income)

7.   Depreciation claimed in Point 42 of Part A – P&L but Schedule DPM /DOA not filled.

8.   Mainly ITR 4- Deduction claimed under Chapter VIA under sections 80IA, 80IB,80IC, 80G but the relevant Schedules not filled

9.   All ITR forms – Brought Forward Loss has been claimed at Point 9 of Part B TI but Schedule CFL (Carried Forward Loss) has not been filled.

10. All ITR forms – No Income details or tax computation has been provided in ITR but details regarding taxes paid have been filled and filed.

11. ITR 6 – Corporate assessee has filed ITR 6 but audit information is incomplete

12. ITR 4 & 5 – In audit information 44AB Flag is Y but Part A P&L and or Part A BS not filled.

13. ITR 4- Part A P&L and Part A BS not filled but entire tax is claimed refund which is more than Rs. 25,000.

14. ITR 1- 4 – Gender Mismatch – The Gender provided in the return does not match with that appearing in the PAN database.


Disclaimer: The contents of this article are for information purposes only and does not constitute advice or a legal opinion and are personal views of the author. It is based upon relevant law and/or facts available at that point of time and prepared with due accuracy & reliability. Readers are requested to check and refer to relevant provisions of statute, latest judicial pronouncements, circulars, clarifications etc before acting on the basis of the above write up.  The possibility of other views on the subject matter cannot be ruled out. By the use of the said information, you agree that Author / TaxGuru is not responsible or liable in any manner for the authenticity, accuracy, completeness, errors or any kind of omissions in this piece of information for any action taken thereof. This is not any kind of advertisement or solicitation of work by a professional.

(Republished with Amendments by Team Taxguru)

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May 2021