A tax return is deemed defective if it has incomplete or inconsistent information whether in the main return, the schedules or for any other reason.
New Delhi: If you’ve recently filed your income tax return there’s a high chance that you might receive a defective return notice. The number of these notices has been on the rise, according to Economic Times. If you do receive one, don’t panic—you’re given a 15-day window to fix the defect after getting the notice under Section 139(9).
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Here are some common reasons why your Income Tax Return (ITR) might be tagged as ‘defective’
– Name Mismatch: If the name on your PAN card doesn’t match the name provided in your ITR.
– TDS Credit Without Income: Claiming Tax Deducted at Source (TDS) credit without reporting the corresponding income.
– Missing or Incorrect Information: Errors or omissions in essential details, like bank account information.
– Incomplete Return: Filing an incomplete return, such as not attaching required documents or leaving out mandatory fields.
If your ITR is tagged as ‘defective,’ you’ll receive a notice under Section 139(9). Once you get this notice, you typically have 15 days to correct the defect and resubmit your return.
Mihir Tanna, Associate Director at S.K. Patodia & Associates LLP, a CA firm, shared with the Economic Times: “Some of our clients have got a defective ITR notice because the income shown in AIS/Form 26AS is not matching with the ITR, when in fact it indeed matches. In another case the tax department said that a particular income cannot be shown in ITR-1, whereas it can indeed be shown in ITR-1 and the law explicitly does not bar showing it in ITR-1.”
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Here’s how you can correct a defective ITR using the e-filing portal:
– Log In: Visit the e-filing ITR portal and log in with your credentials.
– Start Filing: Go to the ‘e-File’ section and select ‘File Income Tax Return.’ Follow the on-screen instructions.
– Select Reason: When prompted, choose ‘Filed in Response to Notice u/s 139(9) to rectify the defect’ as the reason for filing.
– Address the Defect: Review the defect mentioned in the notice. If you agree with it, simply file a revised ITR to correct the issue.
– Disagree Option: If you don’t agree with the notice, go to the ‘e-Proceedings’ tab, select ‘Disagree,’ and provide a detailed explanation for your disagreement in the text box provided.
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Here’s how you can rectify a defective ITR:
– Rectify Within 15 Days: Once you receive a defective return notice, you have 15 days to correct the issue. If you need more time, you can request an extension.
– Authorise Someone Else: You can also authorize someone else, like your tax advisor, to respond to the notice on your behalf.
– Act Promptly: If you don’t respond within the given time, your return could be considered invalid. This might lead to penalties, interest charges, and losing the ability to carry forward losses.
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What is a defective Income Tax return?
A tax return is deemed defective if it has incomplete or inconsistent information whether in the main return, the schedules or for any other reason. If your return is considered defective, the Income Tax Department will notify you under Section 139(9) of the Income Tax Act. This notice will be sent to your registered email ID or by post. You can also view the notice by logging into the e-filing portal.
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