When any important information is missing or reported wrongly on the return, it is known as a defective return. In any of the above cases, the income tax department issues a defective notice u/s 139(9) to the taxpayers, intimating them about the same and asking them to correct the inaccuracies present in the return.
You are required to make the necessary corrections in the return within 15 days of receiving the notice. If you fail to correct the ITR on time, it might have certain consequences in the future.
The defective return notice u/s 139(9) is issued via email to your registered email ID. You can also access the notice on the income tax e-filing portal.
What is the Reason for Defective Notice 139 9?
Assesses can receive a defective return notice for various reasons. Some of the major reasons for a defective return notice are listed below –
Incomplete ITR –
Need to fill the annexure, statements, and columns in the income tax return. It must be duly filled wherever required. For example, while claiming deduction u/s 80G, the details in its schedule need to be filled or correctly filled.
Missing Tax Information –
Tax, together with interest, if any, is paid before filing the return, and all the details relating to it are not filled in. For example, the BSR code, Date of challan, and challan serial number should be correctly filled in.
Mismatch in Information –
The tax actually paid does not match with the tax payable in the income tax return, or taxes are not paid in full.
Presumptive Taxation Scheme –
While filing ITR 4, if total presumptive income is shown as less than 8% or 6% of gross turnover or receipts, as the case may be, then in that case, ITR 3 should have been filed. The Gross receipts are not mentioned in the Profit & Loss A/c, Or the Gross receipt or income u/s 44AD is shown as more than Rs. 2 Crore in ITR 4.
If you have filed your return u/s 44ADA with a gross receipt of more than 50 Lakhs without a Balance sheet and Profit & Loss, then a notice will be received for filing ITR-3 with audited B/s and P&L Statement.
In budget 2023, this limit for presumptive taxation has been increased. For 44AD it is increased to 3 Crores and for 44ADA it is increased to 75 lakhs. This increase in limit is subject to the condition that 95% of receipts must be through online sales.
Maintaining books of accounts –
You’re required to maintain regular books of account such as Balance Sheets and Profit and Loss statements, but they have not been filled in the return while filing it.
TDS Claimed but Income not Mentioned –
The tax deducted has been claimed as a refund, but no income details are provided in return.
Related to Income Tax Audit –
When the books of accounts have been audited, but a copy of the audit report and audited financial statements have yet to be filled in the return while filing it.
Cost Audit Requirements –
If the entity is required to conduct a cost audit but fails to provide detailed information of the same.
Mismatch in Name –
Name mismatch between PAN and Income Tax Return.
What Shall I do After Receiving Notice u/s 139(9)?
Once you’ve received income tax notice u/s 139(9), you must correct your return by revising it within 15 days from receipt by the Income Tax Department. You can also apply for an extension by writing an application to the Assessing Officer (A.O.) requesting an extension of the deadline for filing a revised return. Practically, it is seen that even if a taxpayer rectifies the defect after the expiry of fifteen days. Still, before the assessment is made, the Assessing Officer may condone the delay and treat the return as valid.
However, if the response is not filed within 15 days, you can demand an additional time extension to complete the revisions. If you are not granted the additional time for filing your response then, the original return filed is treated as an invalid return.
What Will Happen if I Don’t do Anything After Receiving Notice for Defective Return u/s 139(9)?
If you fail to file a response to a defective return notice u/s 139(9) or revise your ITR within the specified time frame, your defective return will be treated as a non-filed or invalid return. This means the Income Tax Department will consider it as if you’ve not filed a return for the year. Consequently, your refund will also not be processed by the Income Tax Department, if any.
How Will I Receive Notice u/s 139(9)?
You will receive notice u/s 139(9) from the income tax department on the email ID entered while filing your ITR. Usually, these notices are received from CPC, and the subject line is ‘Communication u/s 139(9) for PAN AWZXXXXXXX for the A.Y.2023-24’. The notice is attached to the email and protected with a password. The password to open the notice is PAN in lower case and the date of birth in the format DD/MM/YYYY.
How to Respond to Notice u/s 139(9)?
You can respond to an income tax notice by directly visiting the income tax department’s website and logging in using your credentials. Here’s how you can respond to income tax notices –
Step 1: Click on pending actions on the dashboard and then on e-proceedings.
Step 2: If you have not received any notice, you will see No e-proceedings records
Step 3: If there is any proceeding, you will see it in your pending actions.’ Click on ”For your action and view Notices“
Step 4: Click on ‘Notice/ Letter pdf’ to view the notice.
Step 4 (A): After you have viewed your notice, click on submit a response.
Step 5: After you have clicked on submit a response, you will see a response page where you will have to agree or disagree with the notice.
Step 6: If your response is ‘agree,’ you will see a screen where you will have to provide a response for the said defect.
Step 6 (A): If you disagree with the notice, you can select disagree in the given column and give reasons for the disagreement in the text box provided.
Step 7: Now, if you have selected the agree-on option and offline utility as the mode of response, submit the attachment file for rectifying the defect.
Time limit to respond to defective notice
If you receive a defective notice, you will get 15 days of time from the date of receiving the notice or as the time limit specified in the notice to rectify the defect in the return filed by you.
Can I Withdraw the Response to Defective Notice u/s 139(9)?
Earlier, it was possible to withdraw your response submitted to the defective notice under section 139(9). But this functionality is no longer available. Hence, you cannot withdraw the response made; instead, you can update or view it.
How to Revise your Income Tax Return in Response to the Notice?
One should understand that receiving a tax notice should not necessarily be a cause for panic or worry. Instead, you must view it as a chance to amend mistakes made in your original income tax return. Under Section 139(5) of the Income Tax (IT) Act, taxpayers are entitled to revise their IT returns. This provision allows taxpayers to rectify any unintentional errors or omissions in their IT returns, even after receiving a tax notice u/s 139 9 of the Income Tax Act. The revision can be made prior to the expiry of one year from the end of the relevant assessment year or before the completion of the assessment year, whichever comes earlier. This flexibility provides taxpayers with the opportunity to correct discrepancies and ensure accuracy in their tax filings.
Response to Defective Notice 139(9)
Response to Defective Notice 139(9) – FAQs
1. What is a Defective Return?
A return may be treated as defective on account of incomplete or inconsistent information in the return or in the schedules or for any other reason.
2. How do I know if my return is defective?
If your return is found defective, the Income Tax Department will send you a defective notice under section 139(9) of the Income Tax Act via an email on your registered email id or post and the same can be viewed by logging in on the e-filing portal.
3. Can I update or withdraw my response after submitting the response on the e-Filing portal?
No, you cannot update or withdraw your response once submitted.
4. Can I authorise another person to respond to my Defective Notice?
Yes, you can authorize another person to respond to the defective notice u/s 139(9).
5. Can I correct the defect in the ITR Form online?
Yes, you can submit the response by online correcting the defect in the ITR Form.
6. What is the time limit within which I can respond to a Defective Notice sent by Income Tax Department?
If your return is found defective, you will get 15 days of time from the date of receiving the notice or as the time duration specified in the notice to rectify the defect in the return filed by you. However, you may seek Adjournment and request for an extension.
7. What if I don’t respond to a Defective Notice?
If you fail to respond to the defective notice within stipulated period then your return may be treated as invalid and therefore consequences such as penalty, interest, non carry forward of losses, loss of specific exemptions may occur,as the case may be in accordance with the Income Tax Act.
8. I have been notified about defective returns u/s 139(9). Can I file the return again as fresh return for that assessment year?
Yes, You can either file the return as a fresh/ revised return incase the time provided for filing the return in a particular assessment year has not lapsed or alternatively you can also choose to respond to Notice u/s139. However, once the time provided for filing the return for a particular assessment year has lapsed, you will not be able file the return as a fresh/ revised return and you will have to respond to Notice u/s 139(9). If you are unable to respond to the notice, the return will be treated as invalid or not filed for that assessment year.
9. What are some of the common errors that make a return Defective?
Some of the common errors that make a return defective are as follows:
- Credit for TDS has been claimed but the corresponding receipts/income has been omitted to be offered for taxation,
- The gross receipts shown in Form 26AS, on which credit for TDS has been claimed, are higher than the total of the receipts shown under all heads of income, in the return of income.
- Gross Total Income” and all the heads of income is entered as “nil or 0” but tax liability has been computed and paid.
- Name of taxpayer in ITR does not match with the “Name” as per the PAN data base.
- Taxpayer having income under the head “Profits and gains of Business or Profession” but has not filled Balance Sheet and Profit and Loss Account.