Notice for Defective Return u/s 139(9) of the Income Tax Act
A notice for a defective return under Section 139(9) may be issued if the income tax return is either missing essential information or contains incorrect details.
What is a Defective Return?
A return is considered defective when it lacks essential information or contains incorrect details. In such cases, the Income Tax Department issues a notice under Section 139(9) to inform the taxpayer about the discrepancies and request necessary corrections.
You must rectify the return within 15 days from the date of receiving the notice. Failure to do so may result in certain future consequences, including the return being deemed invalid.
The notice under Section 139(9) is sent to your registered email ID and is also available on the Income Tax e-filing portal for your access.
What Are the Reasons for Receiving a Defective Return Notice Under Section 139(9)?
A taxpayer may receive a defective return notice under Section 139(9) for several reasons. Below are some of the common causes that lead to such a notice:
- Incomplete Income Tax Return (ITR):
Certain annexures, schedules, or columns in the ITR may not have been filled properly or completely.
Example: If you claim a deduction under Section 80G but fail to fill in the related schedule or enter incomplete details.
- Missing Tax Payment Details:
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 Tax Information:
There’s a mismatch between the tax paid and the tax payable as per the ITR, or taxes have not been fully paid.
- Issues Related to Presumptive Taxation Scheme (Sections 44AD/44ADA):
While filing ITR 4, if the total presumptive income is shown as less than 8% or 6% of the gross turnover or receipts, then ITR 3 should have been filed in that case.
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 an audited B/s and P&L Statement.
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 limit increase is subject to the condition that 95% of receipts must be through online sales.
- Non-Maintenance of Books of Accounts:
Where you are required to maintain books of accounts (like Balance Sheet and Profit & Loss), but these are not filled in the return.
- TDS Claimed Without Reporting Income:
If TDS is claimed as a refund but corresponding income is not disclosed in the ITR.
- Tax Audit Report Not Attached:
Where accounts have been audited under the Income Tax Act, but the audit report and financials are not submitted along with the return.
- Cost Audit Requirements Not Fulfilled:
If the entity is liable for a cost audit but fails to provide necessary details in the return.
- Name Mismatch:
Discrepancy between the name on the PAN and the name mentioned in the ITR.
What Should You Do After Receiving a Notice Under Section 139(9)?
If you receive a notice under Section 139(9) from the Income Tax Department, you are required to rectify the defects in your return by filing a revised return within 15 days from the date of receiving the notice.
If you’re unable to revise the return within the 15-day period, you can request an extension by submitting a written application to the Assessing Officer (A.O.). In practice, even if the defect is corrected after the 15-day period but before the assessment is completed, the A.O. may accept the revised return and treat it as valid by condoning the delay.
However, if no response is submitted within the specified time and no extension is granted, the originally filed return will be treated as invalid, meaning it will be considered as if the return was never filed.
What Happens If You Don’t Respond to a Defective Return Notice Under Section 139(9)?
If you fail to respond to a notice under Section 139(9) or do not rectify your income tax return within the prescribed time, your return will be treated as invalid or not filed. In other words, the Income Tax Department will consider that no return has been filed for that assessment year.
As a result:
- Any refund due to you will not be processed.
- You may also face penalties or interest for non-compliance.
If your original return is declared invalid, you may still have the option to file a belated return, subject to applicable penalties and late filing fees, to avoid further consequences.
How Will You Receive a Notice Under Section 139(9)?
The Income Tax Department sends the notice under Section 139(9) to the email address entered while filing your Income Tax Return (ITR). These notices are generally issued by the Centralized Processing Centre (CPC).
The subject line of the email typically reads:
“Communication u/s 139(9) for PAN [AWZXXXXXXX] for A.Y. 2023–24”
The notice is sent as a PDF attachment and is password-protected.
To open the file, use a password consisting of your PAN (in lowercase) followed by your date of birth in the format DDMMYYYY.
For example:
panabc1234d01011990 (if your PAN is ABC1234D and DOB is 01/01/1990)
Time Limit to Respond to a Defective Return Notice
If you receive a defective return notice, you are given 15 days from the date of receipt of the notice, or within the time limit specified in the notice, to correct the defect in your filed return.
Can I Withdraw My Response to a Defective Return Notice Under Section 139(9)?
Previously, taxpayers had the option to withdraw their response submitted against a defective return notice under Section 139(9). However, this feature is no longer available. Now, once a response is submitted, it cannot be withdrawn. You can only view or update the submitted response if required.
