What is defective Income Tax Return and their Consequences?

After we file the ITR with the Income Tax department, the department before passing the order checks and validates the return. However, if the validation is not successful then the IT department issues a notice to the concerned person stating it as a notice for defective return. There are numerous reasons for due to which ITR can be termed as defective. The notice is issued by the department under section 139(9). Following are the reasons due to which notice u/s 139(9) is issued to assessee.

• Incomplete details provided in the return of income;
• The return being filed with no-audit details wherein auditing is mandatory;
• Supporting documents if not attached with the return of income then the return may become defective;
• No row or column should be left blank otherwise it may be liable to become defective return or even invalid;
• When there is loss, but not complied with the audit procedure;
• The tax together with interest, if any, payable in accordance with the provisions of section 140A, has been paid on or before the date of furnishing of the return;

What to do when we receive a notice u/s 139(9)? The assessee must file the return u/s 139(9) in the income tax department website within the mentioned period. The date of receipt of notice must be mentioned as when the notice was received. The assessee is required to correct all the defects as mentioned in the notice. The return would be treated as an original return and no new acknowledgement would be generated against the return filed u/s 139(9). Time limit of defective return The return in respond to notice u/s 139(9) must be filed within the period of 15 days from the date of receipt of such intimation. The time limit may be extended by the assessing officer on an application by the assessee. If the application filed by an assessee for extension of time limit is not responded or no action is taken by the assessing officer then silence should be considered as acceptance of request. The conclusion to the above is that time asked by the assessee has been granted by the assessing officer. Provided that where the assessee rectifies the defect after the expiry of the period of 15 days or the further extended period, but before the assessment is made, the Assessing Officer may condone the delay and treat the return as a valid return. Consequences of not filing the Rectified return within the give time period? If the defect is not rectified within the time limit of 15days or any further extended period or before the assessment is made, then the assessing officer shall treat it as an invalid return. In other word, it is same as not filing a return at all. A return of income shall not be treated as invalid merely by reason of any mistake, defect or omission in such return of income. Hence, it is very important to keep a track on the notices issued by the IT department. Otherwise it may lead to penalties and litigation expenditure at a later stage. Also, if the defect is not cured by the assessee then the benefits of exemption or deduction cannot be claimed as the return is deemed to have not been filed. Once the defect is removed, it will be considered as original return and the return filing date will be same as date of original return. Once the return is valid and in conformity with the intended purpose of the Act, such cured return of income cannot be ignored by the department. Thanks for reading for this article. Please feel free to write to us, We want to hear it all!Suggestions? Complaints? Feedback? Requests?  at [info@taxmantra.com] or call us at +91 88208208 11. We would be more than happy to assist you.