Defective Return: How to Respond to a Notice from the Income Tax Department
FAQs to file response to defective notice
Receiving a notice from the Income Tax Department can be a cause for concern for any taxpayer. One such notice that you may receive is for a defective return. A defective return is a return filed by a taxpayer that has certain errors or omissions, which need to be rectified. In this blog post, we will discuss what a defective return is and how you can respond to the notice received from the Income Tax Department.
Firstly, let's understand what constitutes a defective return. A return can be deemed defective if it lacks certain essential information or if it contains any discrepancies. Some common reasons for a return to be considered defective include:
Omission of income or assets
Incorrect computation of income or tax liability
Failure to disclose foreign assets or income
If you receive a notice for a defective return, it is important to take prompt action. Please read below mentioned FAQs carefully to response the notice in a better way:
Q1: What is a Defective Return?
A1: 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.
Q2: How do I know if my return is defective?
A2: 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.
Q3: Can I update or withdraw my response after submitting the response on the e-Filing portal?
A3: No, you cannot update or withdraw your response once submitted.
Q4: Can I authorize another person to respond to my Defective Notice?
A4: Yes, you can authorize another person to respond to the defective notice under section 139(9).
Q5: Can I correct the defect in the ITR Form online?
A5: Yes, you can submit the response by online correcting the defect in the ITR Form.
Q6: What is the time limit within which I can respond to a Defective Notice sent by the Income Tax Department?
A6: 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.
Q7: What if I don't respond to a Defective Notice?
A7: If you fail to respond to the defective notice within the stipulated period, your return may be treated as invalid, and consequences such as penalties, interest, non-carry forward of losses, and loss of specific exemptions may occur, as per the provisions of the Income Tax Act.
Q8: I have been notified about defective returns under section 139(9). Can I file the return again as a fresh return for that assessment year?
A8: Yes, you can either file the return as a fresh or revised return if the time provided for filing the return in a particular assessment year has not lapsed. However, once the time provided for filing the return for a particular assessment year has lapsed, you will not be able to file the return as a fresh or revised return, and you will have to respond to the Notice under section 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.
Q9: What are some of the common errors that make a return Defective?
A9: Some of the common errors that make a return defective include:
- Claiming credit for TDS without offering the corresponding receipts or income for taxation.
- Discrepancies between the gross receipts in Form 26AS, on which TDS credit has been claimed, and the total receipts under all heads of income in the return.
- Entering "nil or 0" for "Gross Total Income" and all heads of income while computing and paying tax.
- Name of the taxpayer in the ITR not matching with the "Name" as per the PAN database.
- Taxpayers with income under the head "Profits and gains of Business or Profession" but not filing a Balance Sheet and Profit and Loss Account.
Disclaimer:
The information provided here is for general informational purposes only and should not be considered as professional advice. Tax regulations and laws can vary by jurisdiction and change over time. For specific and up-to-date guidance on revising processed income tax returns or any tax-related matters, consult a qualified tax professional or authority. Reliance on the information provided in this discussion is at your own risk, and we are not liable for any actions taken based on this information.