Step-wise Guide to deal with notice of Defective Return under section 139(9)
What is a Defective Return?
When Income-tax return is filed, the details provided in the return are cross-verified and processed by the Income-tax department. The department compares the details provided with the information that is available with them.
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If there are any discrepancies or mistakes or if any information is missing in the return then, the return is treated as Defective Return and notice will be issued under section 139(9).
When can a notice for Defective Return be issued?
- When the details of taxes paid are provided in the return but the income details are not provided.
- When tax deducted has been claimed as a refund, but no income details are provided in the return.
- When you have not paid your taxes in full and filed the return.
- When you are required to maintain Balance Sheet and Profit & Loss statement, but have not filed the same.
- When total presumptive income under Section 44AD is less than 8% / 6% of gross turnover or receipts, ITR-3 has to be filed. A notice is sent when the return form filed is ITR-4 instead of ITR-3.
- The name mentioned on the Income-tax Return does not match with the name on the PAN card.
- Some other reason as considered by the Income-tax department.
How to deal with notice under section 139(9)?
Here is a step by step guide for dealing with notice under section 139(9):
Login to www.incometaxindiaefiling.gov.in using login credentials.
Go to e-File >> e-File in response to notice u/s 139(9)
Click on “Submit” link under Response column for the respective Defective Return Notice number for which response is required to be submitted.
Complete the Income-tax return like normal Income-tax return (using myITreturn) or Income-tax department’s utility.
Note- Defective Return Notice can be issued by either Assessing Officer( AO) or CPC. In both the cases, screens displayed will be different.
For Defective Return Notice raised by AO, the below screen will be displayed.
Browse the xml file of revised return after correcting the defect and click on “Submit”. Below screen will be displayed.
In this case, no further action is required from your side.
In case, Defective Return Notice is raised by CPC, the below screen will be displayed.
Now , on this screen, there will be column “Do you Agree with Defect?” . If you agree with the defect then select "Yes". Select ITR Form Name and upload the respective revised return xml (corrected one).
Note- This option of uploading the revised return XML, will only be given in case you accept the defect, i.e Select “Yes” under column “Do you agree with defect?”
If you do not agree with the defect then select “ No”. You need to provide the remarks under column ”Assessee Remarks” as shown in the below screen, stating the reason as to why you do not agree with the defect.
Note- The error code, error description, probable resolution will be auto -displayed here depending upon the type of defect.
If the company is FII/FPI i.e. if the Assessee selects YES in the dropdown displayed under Details for Error Code 3 table, further details needs to be provided by Assessee as displayed in the below screen and Assessee needs to click on Submit.
If the company is not FII/FPI i.e. if the assesse selects NO in the dropdown displayed under Details for Error Code 3 table, Assesse needs to provide the respective remarks in the text box provided and click on Submit.
On successful submission of the response by the Assessee, the below success screen is displayed.
How to withdraw the response submitted for Defective Return notice?
An Assessee is allowed to withdraw the response submitted for any Defective Return within 3 days of submission. Assessee needs to click on “Withdraw” link under Response column. Details of the submitted response will be displayed.
Assessee needs agree to withdraw by selecting the checkbox and clicking on "Confirm Withdrawal button".