Notice for defective return u/s 139(9) of the Income Tax Act

Filing your income tax returns can sometimes lead to inadvertent errors and omissions. Such errors may result in your return being classified as "defective," prompting the issuance of a notice under section 139(9) of the Income Tax Act, 1961. This section empowers the Assessing Officer (A.O.) to grant a 15-day window to rectify these errors. Below, we present an informative chart depicting the ITR processing flow, including the issuance of notices in cases of discrepancies.

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Understanding Defective Returns

A defective return is one that contains missing critical information or inaccuracies. In such instances, the income tax department issues a notice under section 139(9) to inform taxpayers of these issues and request corrections. It's essential to make the necessary corrections within 15 days of receiving the notice to avoid potential consequences in the future.

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Common Errors Leading to Defective Returns

Several errors can lead to a return being classified as defective, including:

• Incomplete ITR: Failing to complete all annexures, statements, and required columns, such as when claiming deductions under section 80G.
• Missing Tax Information: Inadequate details related to tax payments, including BSR code, date of challan, and challan serial number.
• Information Mismatch: Tax paid not matching the tax payable or taxes not paid in full.
• Presumptive Taxation Scheme: Incorrectly filing ITR 4 when presumptive income falls below the specified percentage of gross turnover or receipts, or failing to mention gross receipts or income under section 44AD.
• Bookkeeping Neglect: Failing to include required financial documents like balance sheets and profit and loss statements.
• TDS Claim without Income Mention: Claiming a tax deduction without providing income details.
• Related to Income Tax Audit: When your books of accounts are not audited as required under u/s 44AB.

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Responding to Notice under Section 139(9)

Upon receiving a notice for a defective return under section 139(9), it's crucial to take prompt action. You must correct your return within 15 days or apply for an extension by contacting the Assessing Officer (A.O.). Even if you rectify the defect after the initial 15-day period, the Assessing Officer may still condone the delay before completing the assessment. Failure to respond within the stipulated time or any extended period will result in the original return being considered invalid.

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Consequences of Inaction

Neglecting to take action after receiving a notice for a defective return under section 139(9) will result in your return being treated as non-filed or invalid. The Income Tax Department will regard it as if you did not file a return for the year, potentially impacting any refunds you might be entitled to.

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Receiving Notice under Section 139(9)

The income tax department will send you a notice under section 139(9) to the email address provided during your ITR filing. Typically, these notices are sent from the Centralized Processing Center (CPC), with the subject line reading 'Communication under section 139(9) for PAN AWZXXXXXXX for the A.Y. 2023-24.' The attached notice is password-protected, with the password being your PAN in lowercase and your date of birth in the format DD/MM/YYYY.

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How to Respond to Notice under Section 139(9)

To respond to a notice under section 139(9), follow these steps:

• Step 1: Access your dashboard and click on "Pending Actions," then select "E-Proceedings."
• Step 2: If there are no pending notices, you'll see "No e-proceedings records."
• Step 3: If there's an ongoing proceeding, you can view it under "Pending Actions" and click on "For Your Action and View Notices."
• Step 4: Click on "Notice/Letter PDF" to review the notice.
• Step 4 (A): After reviewing the notice, click on "Submit a Response."
• Step 5: When you choose to "Agree" with the notice, you'll be prompted to provide a response for the specified defect.
• Step 6 (A): If you "Disagree" with the notice, you can select this option and provide reasons for your disagreement.
• Step 7: If you opt for "Agree" and offline utility as your response mode, submit the attachment file for defect rectification.

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Withdrawal of Response

It's important to note that withdrawing your response to a defective notice under section 139(9) is no longer possible. You can only update or view the response.

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Now that you are well-informed about defective notices under section 139(9) and how to respond to them, be vigilant in checking your email and addressing the notice within the 15-day timeframe. If you require assistance with a notice received under section 139(9), do not hesitate to reach out to us for support.