Stepwise Guide to deal with notice under section 139(9)(Defective return)
-What is a defective return?
When income-tax return is filed , the details provided in the Income Tax Return are cross-verified and processed by the IT dept. The dept compares the details provided with the information that is available with them. If they find any discrepancies or mistakes or any information is missing in the return then, they will treat your ITR as Defective Return and they will then issue a Defective Return notice u/s 139(9).
-When can a notice for defective return be issued?
1.When you have filled up details of taxes paid, but have not provided income details in your ITR form and filed it, the Income Tax Department deems it defective.
2.When tax deducted has been claimed as a refund, but no income details are provided in the return.
3.When you haven’t paid your taxes in full.
4.When you are required to maintain balance sheet and profit and loss statement, but haven’t attached them with your Income Tax Return, the tax return is declared defective.
5.When total presumptive income under Section 44AD is less than 8% of gross turnover or receipts, ITR-4 has to be filed. A notice is sent when the return form filed is ITR-4S instead of ITR-4.
6.The name mentioned on the Income Tax Return does not match with the name on the PAN card.
7.Some other reason as considered by the income tax department for claiming your return to be defective.
How to deal with notice under section 139(9)?
Here is a step by step guide for dealing with notice under section 139(9):
Step 1- Login to www.incometaxindiaefiling.gov.in using your User ID, Password and Date of Birth/ Incorporation
Step 1(a) -Go to e-File e-File in response to notice u/s 139(9) .
Step 2-Click on “Submit” link under Response column for the respective defective notice number in order to submit the response.
Step-3 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.
Step-4 For defective notice raised by AO, the below screen will be displayed.
Browse the xml of revised return after correcting the defect and click on “Submit” , after which the below screen will be displayed.
In this case, no further action is required from your side .
Step -5 In case, defective notice 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" under column “Do you agree with defect?”, Select ITR Form Name and upload the respective revised return (corrected one) XML.
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” under column “Do you agree with defect?”, you need to provide the remarks under column ”Assesse 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.
Step-6 If the company is FII/FPI i.e. if the assesse selects YES in the dropdown displayed under Details for Error Code 3 table, further details needs to be provided by assesse as displayed in the below screen and assesse 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.
Step 7- On successful submission of the response by the assesse, the below success screen is displayed.
-How to withdraw the Defective response submitted?
An assesse is allowed to withdraw the response submitted for any defective return within 3 days of submission. Assesse needs to click on “Withdraw” link under Response column. Details of the submitted response will be displayed. Assesse needs agree to withdraw by checking the checkbox and click on Confirm Withdrawal button.