I recently got a defective return notice u/s 139(9) from IT department for my ITR – AY 2017-18. A return is considered to be defective when there’s an error with calculations or tax paid vs tax liable or details supplied.
The error may be very small but still, It is considered as defective and you get a notice from IT department explaining the error and probable resolution. All you have to do is correct the ITR and e-File in Response to Notice u/s 139(9) But there are few things to take care of while correcting the return. Let’s check it out.
I’m explaining this article with respect to notice that I received but Its almost the same for every notice u/s 139(9)
The error description and probable resolution mentioned in the notice.
The provisions of Section 44ADA not applicable to the taxpayer. The nature of business code in Sch NOB is not a profession, and the income disclosed under Section 44ADA income is more than zero. Hence the provisions of Section 44ADA is not applicable to the taxpayer. Error code 89
The provisions of Section 44ADA is applicable only to Professionals with nature of business codes of 601 to 607. Taxpayer is requested to furnish correct Return Form type,i.e.ITR- 3 or ITR- 5 as applicable. If the Income has been disclosed under incorrect Section, the correct Section of the Schedule BP may be filled. If the Nature of Business code entered in the Return filed is not correct, the correct nature of business Code may be entered in the Sch NOB and the Corrected Return may be filed.
I’m a freelancer providing technical services So I opted for presumptive taxation u/s 44ADA and filed ITR-4 which is also applicable to professionals with receipts less than 50 lakhs. 50% of the receipts are considered as taxable income under this section. No additional expenses can be claimed.
The error was in the Schedule BP where Nature of business/profession is mentioned. I had selected Software development agency as the nature of business with code 0711.
If you are eligible u/s 44ADA and filing ITR4 then make sure to select appropriate nature of business code which is between 601 to 607. In my case, It is 607 – Professionals – Others. So I changed the code and filed the return in response to Notice u/s 139(9)
Filing return u/s 139(9)
- Download ITR offline utility from Income tax offline-utilities page. Java utilty looks better than Excel utility.
- Use your previously filed xml to prefill data (Prefill > select xml file). Make corrections as per your notice but make sure not to change any other details apart from errors.
- Select 18 – u/s 139(9) in “Return filed under section” field. and Original in “Whether original or revised return?” field. This is not a revised return!
- Enter original acknowledgement number which is found in your Form-V. Enter date of filing of original return
- Finally enter the Notice number and date of notice and generate XML
What is Notice number under section 139(9) in ITR
Notice number is nothing but Communication reference number received in the notice. Few users are reporting that their notice number is more than 23 numbers but the utility allows only 23 numbers. In that case, remove CPC part in the reference number and use it.
Submitting return in IT portal
Login to portal. Go to e-File > Response to Notice u/s 139(9) > Open the notice > select Yes in “Whether you agree the defect” field > upload xml and submit.
There may be a delay in IT portal to show up your notices in e-file in response to 139(9) section. Wait for 2 to 3 days and It’ll show up.
If you have and questions or feedback, comment below.