Hello Friends, Non Audit Income Tax Return session for the A.Y-2024-25 has been ended on 31st July. On 2nd August, Income Tax department has issued some interesting facts about this ITR session. Approx 7.28 Crore Income Tax return has been filed by persons before 31st July, 2024. Out of which approx 58.57 lakh individuals have filed their ITR for the 1st Time. Further, More than 43.82 percent of the returns were filed using the online ITR utility available on the e-filing portal and the remaining through offline ITR utilities. Income Tax portal ITR utility has been normally used by persons who are filing their ITR by themselves. Because Professionals like CA are using other Income Tax Software to file their Clients client ITR’s with more accuracy and to maintain their client database for many years at one place.
Above then above, interesting facts revealed by Income Tax department, we professionals has noticed 1 more common thing while filing our clients ITR that, out of 4 persons, 1 person is either involved in Crypto Currency trading or Share market Trading/ Intraday/ F&O / Short Term/ Long term investments.
After closing of ITR session on 31st July, now Income Tax Department has start processing the ITR u/s 143(1) of the Income Tax Return and in the past 3-4 days, I received many calls from persons who filed their ITR by themselves or they have filed their ITR with the persons who have charged a fees of Rs.100/- to Rs.500/- per ITR i.e less competent person that there they have received notice U/s 139(9) of the Income Tax Act, 1961 – Defective return Notice. In this article, we will discuss about Section 139(9) of the Income Tax Act, 1961 and reasons why notice u/s 139(9) are normally issued.
In layman language, while processing ITR u/s 143(1) of the Income Tax Act, 1961, department will check, whether all the income that are reflecting in AIS/ TIS/ Form 26AS or any other arithmetical error is reflecting in filed ITR form or not. If any error is found in ITR then notice has been issued to person to rectify the specified error within a given time frame, which is normally 10-15 days. If no response is filed within specified time period then ITR will be considered as defective and it is considered that no ITR has been filed by Assessee and all consequences of non filing of Income Tax return lies on assesee.
One more thing which, I have noticed that, now department has made some changes in there algo to catch mismatch of AIS/ TIS/ Form 26S information. Because in past, it is observed that assessee ITR is processed u/s 143(1) even with the fact that, he has undisclosed income in his ITR which is reflecting in his AIS/TIS report. These evaders are later catched by income tax department by issuing notice U/s 133(6) of the Income Tax Act, 1961. But this time, department is issuing red flag at the entry gate only to recover taxes at the earliest possible.
FAQ’s U/s 139 (9) of the Income Tax Act, 1961
I have filed my ITR before 31 July and now received 139(9) notice. Whether it is mandatory to submit response against this notice?
Yes, it is mandatory to submit response against 139(9) notice within specified time period. If no response is submitted within specified time period, your ITR will be considered as defective and all consequences of non filing of Income Tax return within specified time period will be faced by you.
I missed the due date to submit response u/s 139(9) of the Income Tax Act, 1961, what should I do in this case?
In my view, if you missed the due date to submit response u/s 139(9) then you must file your ITR again assuming that you are filing your Income tax return after due date and pay applicable late fee at the time of ITR filing.
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Disclaimer: This article is for the purpose of information and shall not be treated as solicitation in any manner and for any other purpose whatsoever. It shall not be used as legal opinion and not to be used for rendering any professional advice. The author will not be held responsible for any loss, if occur after using above information. Kindly consult your professionals before taking any action. This article is written on the basis of author’s personal experience and provision applicable as on date of writing of this article. Adequate attention has been given to avoid any clerical/arithmetical error, however; if it still persists kindly intimate us to avoid such error for the benefits of others readers. The Author “CA Shiv Kumar Sharma” can be reached at Mobile/WhatsApp–9911303737.
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