There are various reasons for making mistakes in our return there are errors on the part of professionals as well and Human error is also one of the reason for defective return. In such cases, you will get a defective return notice as per Section 139(9) to rectify defects within 15 days from the date of receiving such intimation or Assessing officer can also allow extended period on the application made by the assessee.If the assessee does not rectify the defects within the period of 15 days and Extended period if allowed by Assessing officer then it would be deemed as the Assessee has not filled any return of Income. In this article, we shall talk about what happens in case of a defective return notice under section 139(9) issued by the IT Department.
An intimation from the Income Tax Department is sent to a taxpayer when the Assessing officer has found error with the income tax return you have filed.
(a) When return is not submitted in the prescribed form with all annexure and statement duly filled.
(b) Return should be accompanied by proof of tax, if any claimed to have been deducted or collected at source and the advance tax and self assessment tax, if any claimed.
(c) In case the entity is maintaining regular books of accounts, it should be ensured that copies of Trading , Profit & Loss account , Income and expenditure account , Perosnal account of the partners(Partnership firms), Personal Accounts (Proprietary concern ) along with Balance sheet are should be submitted.
(d) All the entities who are required to get there books of accounts audited the it should be ensured that Audited Profit & Loss account along with Balance sheet are submitted
(e) Cost audit report as per section 233B.
(f) Where there is no regular books of accounts are maintained due to the non requirement in the Income tax act or any other act than in that case statement showing amount of Gross turnover, Gross receipts , Gross profits, Expenses and net profit of the business or profession and the basis on which such amount have been computed and also disclosing the amount of:-
There have been instances of department has issued notice for non attachment of Books of accounts , in case of the entities who are not required to maintain books of accounts( Example Presumptive Income as per Sec 44AA) then in that case the current point (f) should be followed.
(g) Details of taxes paid have been furnished but assessee have not provided income details.
(h) A notice for defective return is sent when TDS has been claimed as a refund, but no income details are provided in the return.
(I) Mismatch in the details provided in the return with the PAN card i.e Name and Date of birth.
Note: If tax , interest and fees payable in accordance to self assessment (Sec 140A) have not been paid in full on or before the date of furnishing of return then the return is valid however the return was treated as defective prior to Finance act 2016 but the assessee would be “Assessee in default” and he would be liable to pay penalty plus interest as per section 220 &221.
Return should be revised within the stipulated time period addressing the defects the Assessing officer has pointed out within 15 days from the receipt of intimation order under section 139(9). Assessee can seek extension in the time period from the assessing officer. However the return should be rectified and defect given in the notice should be rectified. In case assessee does not rectify the defect within the said period of 15 days or the extended period but before the completion of assessment then the Assessing officer “MAY” condone the delay and treat the return as Valid return.
(a) Download the ITR Form the Income Tax Department website.
(b) On the income tax return, select the option “In response to a notice under Section 139(9) where the original return filed was a defective return.
(c) Enter the reference number, available on the notice, and acknowledgment number and date of filing original return.
(d) Complete the income tax return including the rectification required.
(e) Generate the XML File and upload it to the Income Tax Department website
(f) Select “e-File in response to notice u/s 139(9)” under the “e-File” section and upload the rectified XML using the password mentioned in the notice.
(g) Confirmation message with an acknowledgment number appears on the Department on successful upload.