Filing your Income Tax Return (ITR) correctly is crucial, but mistakes can lead to defective ITR notices being sent to you under Section 139(9) of the Income Tax Act, 1961. This notice highlights errors or missing information in your return that must be corrected for processing.

Here’s a concise guide on what these notices mean, common reasons for receiving one, and how to respond effectively.

How to handle Defective ITR Notices – Quick Guide

What is a Defective ITR Notice?

A defective ITR notice is issued when your tax return has discrepancies or missing details that prevent it from being processed correctly. The notice outlines the defects and gives you a specified period (usually 15 days) to rectify them. Failure to respond can result in your return being treated as invalid, potentially leading to penalties or loss of refunds.

Common Reasons for a Defective ITR Notice

1. Missing Information: Incomplete or missing details such as PAN, address, or bank information.
2. Incorrect Data: Errors in income, deductions, or mismatched TDS/TCS details.
3. Wrong ITR Form: Filing using an incorrect form not suited to your income type.
4. Verification Issues: Failing to verify the return post-filing or errors with digital signatures.
5. Discrepancies in Income: Differences between reported income and information available to the tax department.

How to Respond to a False ITR Notice

1. Review the Notice: Identify the defects mentioned.
2. Log in to the Income Tax Portal: Access the notice under ‘e-Proceedings’.
3. Correct the Errors: File a revised return with accurate details using the correct ITR form.
4. Submit the Corrected Return: Upload and submit your revised return on the portal.
5. Verify the Revised Return: Complete verification via e-verification or by sending ITR-V to CPC, Bengaluru.

Consequences of Not Responding

• Invalid Return: Your return will be considered invalid, akin to not filing at all.
• Penalties and Interest: Potential penalties and interest on unpaid taxes.
• Refund Delays: Any expected refunds will not be processed.

Tips to Avoid ITR Notices

• Double-Check Details: Ensure all information is complete and correct.
• Use the Correct ITR Form: Match the form with your income sources.
• Cross-Verify with Form 26AS: Check your return against TDS and other tax data.
• Prompt Verification: Don’t skip the verification step after filing.

Receiving a defective ITR notice is common, but responding promptly and accurately will help ensure your return is processed smoothly.

Stay vigilant, review your filings, and follow the compliance guidelines to avoid these notices in the future! Get in touch with Pitchers Global to know more!

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