ITR DEFECTES AND SOLUTION

 ITR DEFECTS   AND SOLUTION

Return of income filed without payment of self-assessment tax (along with interest)

under section 140A considered defective [Section 139(9)]

(i) Under section 139(9), if the Assessing Officer considers that the return of income furnished by the assessee is defective, he may intimate the defect to the assessee and give him an opportunity to rectify the defect within a period of fifteen days or such further period which the Assessing Officer may allow at his discretion on an application made in this behalf by the assessee. If the defect is not rectified within the time allowed by the Assessing Officer, the return is treated as an invalid return. The provisions of the Income-tax Act, 1961 would apply as if the assessee had failed to furnish the return. The Explanation to section 139(9) provides the conditions, the non-fulfilment of which would render the return defective.

(ii) Under section 140A, where any tax is payable on the basis of any return, after taking into account the prepaid taxes, the assessee shall be liable to pay such tax together with interest payable under any provision of this Act for any delay in furnishing the return or any default or delay in payment of advance tax, before furnishing the return.

(iii) However, since quite a few assessees file their returns of income without payment of self-assessment tax, clause (aa) has been inserted in the Explanation to section 139(9) to provide that the return of income shall be regarded as defective unless 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.