Understanding Section 139(9) of the Income Tax Act

Section 139(9) of the Income Tax Act, 1961 deals with defective income tax returns filed by taxpayers. When the Income Tax Department identifies errors or inconsistencies in a filed return, they issue a notice under this section to the taxpayer.

What is Section 139(9)?

Section 139(9) of the Income Tax Act pertains to defective returns. A return of income is considered defective if it does not fulfill certain conditions laid down by the tax authorities. If a return is deemed defective, the assessing officer (AO) will notify the taxpayer, and the taxpayer must rectify the defect within the stipulated time.

What Makes a Return Defective?

A return can be considered defective for various reasons, including:

• Incomplete or missing personal/financial details like name, address, PAN etc.
• Mathematical errors in computing total income, deductions or tax liability
• Filing the wrong ITR form for the assessment year
• Failure to provide supporting documents for claimed income, deductions etc.
• Mismatch between TDS details in return and Form 26AS
• Reporting "nil" income but computing and paying tax

Receiving a 139(9) Notice

The Income Tax Department will send you a defective notice via email or post if your return is found defective. You can also view the notice by logging into your income tax e-filing account under "Pending Actions" > "E-proceedings".

Responding to the Notice

If you receive a 139(9) notice, you have 15 days (or the time specified in the notice) to rectify the defect. Here's how you can respond:

• Log into the income tax portal
• Go to "Pending Actions" > "E-proceedings" and view the notice
• Understand the error described and select 'Agree' if you agree with it
• Prepare a rectification JSON file using the ClearTax platform
• Upload the JSON file on the portal to submit your response
• If you disagree with the notice, select 'Disagree', provide reasons, and submit the response.

Consequences of Non-Response

If you fail to respond within the time limit, your return may be treated as invalid, leading to consequences like:

• Penalties and interest
• Loss of exemptions and deductions
• Non-carry forward of losses

Steps to Rectify a Defective Return

• Login to the Income Tax Portal: Visit the official income tax e-filing website and log in using your credentials.
• Navigate to ‘e-File’ Section: Go to the ‘e-File’ menu and select ‘e-File in response to notice u/s 139(9)’.
• View Defective Return Notice: Click on the relevant notice to view the details of the defect(s).
• Correct the Defects: Make the necessary corrections in the return as per the notice.
• Upload the Rectified Return: Upload the corrected return along with any required supporting documents.
• Submit: Submit the rectified return and generate an acknowledgment receipt.

Other Options

• You can authorize someone else to respond to the 139(9) notice on your behalf
• If the time to file a revised return hasn't lapsed, file a fresh/revised return instead of responding

Conclusion

In conclusion, Section 139(9) is a tool to ensure accurate reporting of income and financial activities by taxpayers. Receiving a 139(9) notice is not uncommon, and responding promptly and correctly is crucial to avoid adverse consequences. The key is to understand the error, rectify the defect, and submit the response within the stipulated time.