Understanding Defective ITR Notice u/s 139(9)
As a taxpayer, receiving a notice from the Income Tax Department can be daunting, especially if it’s a Defective ITR Notice under section 139(9). This notice indicates that your Income Tax Return (ITR), which is a form used to file information about your income and tax payable thereon to the Income Tax Department, has certain deficiencies that must be corrected. In this blog, we will explore the common reasons for receiving a Defective ITR Notice, how to rectify it, and the potential consequences of not promptly addressing it.
- Common Reasons for Receiving a Defective ITR Notice under section 139(9)Incomplete ITR:
- One typical example is claiming a tax deduction under section 80G without filing the details of the donation schedule.
- Missing or Mismatched Tax Payment Information:
- Instances where the tax challan is missing or essential details, like the BSR code and challan number, are not filled out.
- Balance Sheet and Profit & Loss Statements Not Filed:
- Taxpayers required to maintain books of accounts must file their Balance Sheet (B/S) and Profit & Loss (P/L) statements. Failing to do so can result in a defective return.
- Missing Financial Particulars:
- Taxpayers opting for sections 44AD, 44ADA, or 44AE need to provide specific financial particulars. Missing this information can trigger a notice.
- Tax Audit Report Not Filed:
- The return is considered defective if a tax audit is applicable and the Tax Audit Report (TAR) is not filed.
- TDS Claimed but Income Not Shown in ITR:
- Claiming Tax Deducted at Source (TDS) without showing the corresponding income can lead to a notice.
- Cost Audit Details Not Disclosed:
- In cases where a cost audit is applicable, not disclosing the details can make the return defective.
Steps to Rectify a Defective ITR
- Identify the Defect:
- Carefully read the notice to understand the specific defect.
- Correct the Defect:
- Log into the e-filing portal and correct the defect by providing the required information.
- Submit the Revised Return:
- Submit the revised return within the stipulated time frame, typically 15 days from the receipt of the notice.
Consequences of Not Rectifying the Defective ITR
- Return Treated as Invalid:
- The return is treated as invalid if the defects are not corrected within the allowed time.
- Loss of Carry Forward Losses:
- An invalid return means you lose the ability to carry forward certain losses.
- Penalties and Interest:
- There could be penalties for non-compliance, incorrect filing, and interest on unpaid taxes.
Additional Scenarios Leading to Defective ITR
- Incorrect PAN:
- Filing returns with an incorrect PAN can render the return defective.
- Incorrect Form:
- Using the wrong ITR form for filing.
- Non-Disclosure of Mandatory Information:
- Not disclosing mandatory fields like bank account details.
- Non-Compliance with Sections 44AB:
- Not complying with the audit requirements under section 44AB.
Practical Example
For instance, let’s say you filed your ITR and claimed a deduction under section 80G for a charitable donation. However, you forgot to attach the donation receipt. In this case, you might receive a Defective ITR Notice u/s 139(9), asking you to provide the missing information. By logging into the e-filing portal, you can correct this oversight and submit the necessary documents.
FAQs
Q: What happens if I don’t rectify the defects in my ITR?
A: Your return will be treated as invalid, leading to potential penalties and loss of benefits like carry forward losses.
Q: How much time do I have to correct the defects in my ITR?
A: Typically, you have 15 days from the receipt of the notice to rectify the defects.