Notice for Defective Return u/s 139(9) of the Income Tax Act

It often happens that while filing income tax returns, we omit things or commit some mistakes. These mistake(s) make your return “defective,” and you’re issued a notice of defective return u/s 139(9). Section 139(9) of the Income Tax Act, 1961, states that when a return is found defective, the A.O. gives you a period of 15 days to correct the mistake. The return can be considered defective for one or many reasons, as stated below. In this article, we will discuss the various reasons why you might receive a defective return notice and how to respond to a defective return notice under section 139(9).

Income Tax Notice Alert: The Income Tax Department has been issuing notices to taxpayers regarding House Rent Allowance (HRA) exemptions claimed under Section 10(13A) where TDS was not deducted on rent paid, as required under Section 194-IB. If you have received such a notice, it is crucial to take corrective action to avoid potential penalties. File Updated Return

What is a Defective Return?

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.

Have you received a defective return notice? File a revised ITR now to resolve it.

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.

If your original ITR becomes invalid, you can file a belated return along with a penalty fee to avoid further consequences. File a belated return now!

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.

How to Revise Your ITR Using Tax2win in Response to Defective Return Notice?

Tax2win offers two types of ITR filings:-

You can file a revised ITR using any of the below-mentioned methods through Tax2win -

DIY (Self-filing) - If you have a little bit of tax knowledge and are comfortable with taxes, you can simply use Tax2win’s DIY ITR filing software. It is an AI-integrated software that automatically selects the applicable ITR form.
If you are wondering how to file a revised ITR with Tax2win, here are some simple steps you need to follow -

Step 1: Either sign in to the tax2win website using your existing credentials or sign up to the portal and create an account. You can do self-filing only in the case of income from salary, business, and capital gains.

Step 2: After logging in, a table consisting of all the possible sources of income opens. You need to select the income sources that you have. Based on your sources of income, Tax2win’s DIY ITR filing system selects the applicable ITR form automatically.

Step 3. You need to upload Form 16. In case you don’t have Form 16, you can simply skip the option and proceed further.

Step 4. Select the F.Y. and enter the PAN Details and DOB. (If you don’t have a registered account with the Income Tax Department, you will receive an OTP and a new account will be created.). You can also choose if you want our DIY software to fetch your personal details and get data pre-filled.

Step 5: Enter a few basic details in the next step. Some of it is pre-filled from the Income Tax Department’s database. Remember to cross-check the information available. As shown in the image given below, you have to enter your personal details like name, email ID, date of birth, father’s name, gender, etc.

Step 6: In the next step, you have to provide your address details and employer category. You can refer to the image below to understand this better.

Step 7: In the next step, you have to fill in your employment details. The standard deduction is applied automatically in the case of salaried employees. As shown in the image below, you have to enter your gross salary/CTC, exempted allowances like HRA, LTA, gratuity, net salary, and standard deduction and professional tax under section 16. Note that if you have uploaded Form 16, your employment data will be pre-filled in the ITR Form. All you have to do is verify the information and proceed to file ITR.

Step 8: Enter the details of the investment made during the year to calculate the applicable deductions. You have to enter details of investments in PPF, LIC, PF, housing loan, FDR, NSC, tuition fees, premiums paid to the annuity, and other 80C deductions.

Step 9: In this step, you are required to enter your bank details. Enter your IFSC code, name of the bank, account number, and Aadhaar details. As per government law, it is mandatory to show all the bank details. You can select one account as the primary account. Remember, you will get a TDS refund in your primary bank account.

Step 10: In this step, you have to upload Form 26AS, and your TDS details will be auto-populated. If you don’t have Form 26AS, you can skip it and fill in the details manually before filing your ITR. If you have paid the tax, select yes on Advance Tax and any tax paid on other income sources, enter the details from the receipt generated, and click on Continue.

Step 11: Select “Revised Return” as your return filing type. If your income is less than Rs.2.5 lakhs and electricity expenses during the year are less than 1 lakh, select yes on the option ‘Are you filing return under the seventh proviso to section 139(1). Also, select the number of days for which you have stayed in India in the relevant FY. The system will automatically determine your residential status.

Step 12: Based on the information given by you in the previous sections, the software automatically computes your tax liability using both the old and the new regime. You can compare both regimes and select the one that is more beneficial for you.

Step 13: Remember to cross-check all the information in return, click on the checkbox, and click on “File my return.” And here, you are done with filing. Don’t forget to e-verify the ITR at the same time. Remember to e-verify your return within 30 days.

You can also file a revised ITR directly through the Income Tax Portal.

To file a revised ITR with Tax2win, click here.

Expert-Assisted ITR Filing

If you are someone who finds taxes complicated and don’t know how to file an ITR, you can simply book an online CA from Tax2win, who will not only help you file your ITR accurately but can also help you maximize your refund and help you with responding to notices. All you need to do is follow these simple steps -

Step 1. Click on Book eCA Now.

Step 2. First, register on Tax2win’s website and then click on ‘Hire your personal eCA Now”.

Step 3. Choose your sources of income and click on next.

Step 4. Select how many employers you have and click on next.

Step 5. Select if you have business or professional income and click on next.

Step 6. Select if you own a house or not and click on next.

Step 7. Select if you have any income from capital gain or not and click on next.

Step 8. Checkout the CA-assisted plans based on the information shared by you and select the most appropriate one as per your needs. Click on ‘hire now’ and get an eCA.

Sample email of the Notice under Section 139(9)

How Can Tax2win Help You Respond to an Income Tax Notice?

Received a tax notice from the Income Tax Department? Don’t worry—Tax2win’s got your back! Here's how we make it stress-free:

• Expert Guidance: Get personalised assistance from our team of experienced CAs and tax professionals.
• Detailed Notice Analysis: We decode the notice to help you understand exactly what the IT Department wants.
• Right Documentation: We help identify and compile all necessary documents needed for your reply.
• Drafting Accurate Responses: Our experts prepare clear, compliant, and timely replies to avoid penalties.
• Complete Compliance: We ensure your response aligns with tax laws to reduce the chances of further queries.

Don’t ignore that notice—get it resolved with ease! Connect Today