How to tackle a defective notice: how to prepare and upload ITR JSON to resolve, covers how to handle, timing, payment, submission, inclusion of additional income
This Document Covers
- What is a Defective Notice
- Reasons for Defective Notice
- What to do after receiving defective notice ?
- Time Limit for response to defective notice
- How to file response to defective notice ?
1. What is a Defective Notice
Defective return means the income tax return which was filed is incomplete or having inconsistent information in the return or audit report or schedules or any other reasons. Section 139(9) deals with the defective return. If the income tax returns are found to be defective, then the Income Tax Department will issue the defective notice u/s 139(9) to the taxpayer email Id and the taxpayer can see the same in Income tax portal.
2. Reasons for Defective Notice
Following is some of the reasons for the defective notice.
- TDS credit claimed in the income tax return but the corresponding income is not shown in Income tax return
The Gross receipts in Form 26AS is higher than the total receipts shown under the different heads in filed income tax returnsTaxpayer having income under the head business/profession, but P&L and Balance sheet is not filledTurnover more than the prescribed limit but Audit report is not filedGross income mentioned in the income tax return is 0 but the tax is paid, or refund is claimedIf the income tax return is audited, the income tax return should be accompanied by the audited profit/loss, balance sheet and auditor report
- Example 1: Mr Vishnu is a salaried employee and his company gives form 16. He is also having Fixed deposit with a bank and the bank has deducted TDS of Rs 2000 on the interest of Rs 20,000. While filing his income tax returns, Vishnu has not shown the interest income but claimed the TDS of Rs 2000. In this case, Mr Vishnu will get the defective notice u/s 139(9)
- Example 2: Mrs Rukmini is a senior citizen and having interest of Rs 6 lakhs and she is filing her income tax return by showing interest income. She has sold her Flat for Rs 60 lakhs and TDS @ 1% has been deducted by buyer. While filing , she has claimed Rs 60,000 TDS but not shown the sale proceeds of her flat in Income tax return. In this case, Mrs Radha will receive the defective notice u/s 139(9)
3. What to do after receiving defective notice ?
Generally defective notices will be issued by CPC, Bangalore while processing the income tax returns. Assessing officer can also issue the defective notices in certain cases. The taxpayer will have 2 options after receiving the defective notice.
- Agree: If the taxpayer agrees with defect, he needs to select agree and file the corrected return
- Disagree: If the taxpayer does not agree with the defective notice, he needs to select disagree and mention the reasons for the same
4. Time Limit for response to defective notice
The time limit for response submission to defective notice is 15 days from the date of notice. Generally, the due date for response is mentioned in the notice given.
Consequences of non-response or belated response to defective notice
- If the taxpayer does not respond to defective notice or respond after the time limit, the income tax return filed by him will be treated as invalid return.
- If the taxpayer files the return later, it would be treated as belated return and the penalties would be levied. If the taxpayer does not file the return later, it would be treated as that he did not filed the return
Note: The Assessing officer can condone the delay if the taxpayer files the response to defective notice after due date but before the assessment is made in certain cases
5. How to file response to defective notice using EZTax.in for free?
The taxpayers can use EZTax to submit the response to defective notice. Follow the below instructions to prepare the correct return in response to defective notice.
Steps in EZTax.in
- Login to https://eztax.in/
- Select Self Service Tax Filing and select the relevant assessment year
- Select the return type as “Defective and Rectification”
- Enter the Original Return acknowledgment number and date of Filing
- Enter the Defective notice number (DIN) and notice date.
- Enter the data and changes required in income, investments, deductions and TDS and download the JSON file in review page
Note: If you have used EZTax.in earlier for filing original return, select the service number so that your data will be copied. You can make the corrections required and download the JSON file
Steps in Income Tax portal
- Login to incometax.gov.in/
- Go to e proceedings and select the relevant notice
- Click on View notices
- Select Agree or Disagree for the question “do you agree with the defect”?
- If you are agreeing with defect, upload the JSON file downloaded from EZTax.in and select the consent check box and click on submit
- If you are disagreeing with defect, mention the reasons for disagree and select the consent check box and click on submit
The response to defective notice can be filed only once. It is not possible to submit multiple responses
No, you cannot update or withdraw the response submitted to defective notice
If you do not submit the response to defective notice, the return filed is treated as invalid return and it is treated as if the return was not filed.
You cannot file ITR 2 if the original return was filed under ITR 1. You need to file the revised return and submit the response to defective that the revised return has been filed.
The Income tax return filed is not considered as defective notice merely because self-assessment tax/advance tax challans are not included in income tax returns.
Yes, you can file the fresh ITR again if there is due date but it would be treated as belated return and the corresponding penalties would be levied.