Received an Notice under Section 139(9)? Here’s what you need to know

31 October 2024 5 min read

Filing an Income Tax return often brings a sense of relief for taxpayers, but that relief can quickly turn into concern if you receive a notice from the Income Tax Department. When the income tax authorities find mistakes or inconsistencies in your filed return, they will send you a notice under Section 139(9). The good news is that you are allowed to rectify these mistakes.

In order to ensure a more seamless tax filing procedure, let us explain why you could receive this notice, how to interpret, how to respond, and the consequences of ignoring it.

Why Did You Receive This Notice?

This notice is served when your filed income tax return is considered defective due to some issues or missing information in the return. This can be mainly due to the following reasons:

Incomplete ITR: If any of the required information such as address, PAN, relevant bank accounts, income from other sources etc. is missing from your ITR’s annexures or statements.
Missing Tax Information: If taxes, such as TDS, TCS, advance tax, or self-assessment tax, have been paid but their details are missing.
Mismatch in Income & TDS: If you claim a tax credit but the total income reported in your tax return is lesser than what is reflected in Form 26AS.
Incorrect reporting of income: If you report “nil” or zero income in your ITR but tax authorities have identified some income and show that tax is payable or vice-versa.
Incorrect Personal Details: Mismatch in the name as per ITR and PAN database, date of birth, Aadhar Number etc.
Undisclosed Income: If you fail to disclose all your sources of income such as income from Capital Gain, Fixed Deposits, Freelance work, and part-time job.
Non-Compliance with ITR Form: If you do not choose the appropriate ITR Form or do not fill out the form with all the necessary information.

Time Limit to Serve the Notice

There is no specific time limit for serving a notice under Section 139(9). This implies that if the tax authorities discover errors in your income tax return, the notification may be served at any moment within the assessment year after the return filing.

Time Limit to respond

You are given 15 days to respond to a notice under Section 139(9) by rectifying the errors in your ITR. You can write to your Assessing Officer to request an extension if you require additional time. Depending on the justification given, they can decide to extend the time.

How to Interpret the Notice

Generally, a notice under Section 139(9) provides you with a brief explanation of why your ITR is being treated as defective, along with error numbers. Examining these facts in detail is essential to determine what needs to be fixed. Here are a few common examples:

Error Code 31: It indicates that the Tax Deducted at Source (TDS) amount on your return and the information the tax department has do not match.
Error Code 43: It indicates that income details from other heads, such as capital gains or real estate, have not been submitted.
Error Code 12: It indicates you have not completed the required fields in your return regarding income and deductions.
Error Code 38: It indicates that the deductions or exemptions you have claimed are not accurate.
Error Code 36: It indicates that the bank account information you submitted is inaccurate or missing.

How to Respond

Here is the step-by-step guide on how to respond to the notice under section 139(9):

Step 1: Log in to the Income Tax E-filing Portal: Log in using your PAN, password, and Captcha code.

Step 2: Access the Notice

Go to the ‘e-Proceedings’ tab and select ‘Response to Notice u/s 139(9)’.
You will find the details of the mistake that has to be fixed.

Step 3: Choose Your Response

You have two options to respond:

Agree with the Defect: If you agree with the defect then file a revised ITR to correct the errors.

Make sure you use the correct ITR form and attach all necessary documents. Ensure that your income, deductions, and taxes match with Form 26AS and Form 16.

Disagree with the Defect: If you do not agree with the defect then you can respond with a clear explanation that justifies why the return should not be treated as defective.

Step 4: Submit the Revised ITR or Explanation

Based on your response, either submit a revised return with corrections if you agree with the defect or provide a suitable explanation with supporting documents if you disagree within the 15-day timeframe.

Once submitted, you’ll receive an acknowledgment that your response has been accepted.

Consequences of Not Responding

Your return will be treated as invalid.
It could lead to penalties and interest for late filing.
It could lead to additional tax liabilities.
You may lose out the benefit of Income tax deductions, exemptions and carry-forward of losses.
It could increase the scope of scrutiny of your returns resulting into loss of tax credits or could create complications in future filings .

Conclusion

Taking charge of your tax obligations can turn a potentially stressful experience into a manageable one! It is imperative to allocate sufficient time to thoroughly examine your return, collect the appropriate data, and reply within the stipulated timeframes. If you are unsure about how to proceed with the notice under section 139(9), consider seeking guidance from a tax professional.

A qualified financial advisor can assist you in responding to income tax notices quickly and effectively. To get help with your income tax notice, download the 1 Finance app and book a consultation with a qualified financial advisor for a seamless, hassle-free tax experience.

Please note,

The views in the article /blog are personal and that of the author. The idea is to create awareness and not intended to provide any product recommendations.