As per the statistics available on e-filing website as on date 6.81 crore returns have been filed and 6.00 crore returns have been verified and out of which 4.34 crore returns have been processed.
Since many ITR have been already processed and it mainly includes processing of ITR 1 and 4, many people have received notices that the return filed by them are defective under section 139(9) of the Income Tax Act. Various reasons for income tax return becoming defective is as under:
1. Income mentioned in Income tax return is not matching the income mentioned in AIS/ TIS.
2. Income offered in income tax return is less than the total income on which TDS has been deducted and TDS credit has been claimed.
3. Income tax return has not been verified within 30 days from the date of filing.
4. Any form supporting the audit/ claim by assessee is not filed on income tax e-filing portal.
As of now the notices is being served to assessee mainly for the first 2 reasons, wherein the major source of such discrepancies are as under:
1. Either employee has worked with 2 or more employers but has offered only 1 employers salary to tax.
2. Employee has earned income from freelancing or working as an independent contractor but has not offered such income for tax and TDS has been deducted on such income.
3. Employee has sold shares or mutual funds but has not offered same in his income tax return.
These are the major reasons for receiving such defective income tax notices and income tax department gives 15 days to respond to such notice either by accepting the defect and filing correct income tax return or disagree with the defect and give reason for same.
In most cases the defect is genuine and assessee should offer such income to tax correctly and again submit the correct JSON.
If no action is taken within the due time i.e. 15 days against such defective notice then it will be considered as if the return has never been filed and assessee will have to then again file return u/s 139(4) i.e. belated return with interest and penalty till December 2023.
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