Income tax notice -u/s 139 (9) return of income has not been
This query is : Resolved
01 February 2014
I am a salaried personnel. My company has filed TDS for the AY 2013-14. According to the form 16, they have paid the correct TDS as I can match it with the form 26AS i.e. total tax deposited matched with the total TDS deposited.
Today I have received a notice from Income Tax Regional Office that "The return of income filed by me for the AY 2013-14 is considered defective u/s 139(9) as tax determined as payable in return of the income filed has not been paid.
Now I have downloaded the ITR form 1 (Sahaj) of income tax and filled all the details according to my form 16. After completion of the ITR form 1, I found that on the page "income details" all the data correctly matches with the form 16 i.e.total tax and income payable correctly matches with the form 16. But when i moved to the" tax paid and verification" page it shows "Advanced Tax" and "Self Assessment tax", which I could not understand. That makes the total tax paid much higher than the TDS paid by the company. Therefore, some amount is showing in the "refund" section.
Kindly guide me what to do next because I am a salaried individual and i have no other source of income. Though one thing is there is that amount of one of my FD has been credited to my account in the previous year. Does that amount add up in my total income? I shall be very much grateful to you if you could answer my query as I HAVE TO ANSWER THE INCOME TAX DEPT.WITH IN 10 DAYS. KINDLY ANSWER ASAP.
Today I have received a notice from Income Tax Regional Office that "The return of income filed by me for the AY 2013-14 is considered defective u/s 139(9) as tax determined as payable in return of the income filed has not been paid.
Now I have downloaded the ITR form 1 (Sahaj) of income tax and filled all the details according to my form 16. After completion of the ITR form 1, I found that on the page "income details" all the data correctly matches with the form 16 i.e.total tax and income payable correctly matches with the form 16. But when i moved to the" tax paid and verification" page it shows "Advanced Tax" and "Self Assessment tax", which I could not understand. That makes the total tax paid much higher than the TDS paid by the company. Therefore, some amount is showing in the "refund" section.
Kindly guide me what to do next because I am a salaried individual and i have no other source of income. Though one thing is there is that amount of one of my FD has been credited to my account in the previous year. Does that amount add up in my total income? I shall be very much grateful to you if you could answer my query as I HAVE TO ANSWER THE INCOME TAX DEPT.WITH IN 10 DAYS. KINDLY ANSWER ASAP.
02 February 2014
u have option to revise the defect as pointed out by AO within 15 days from date of intimation of such defect. Yes you need to add the FD amount and interest in you income as normally FD are EET mode. And what is shown by you is ok, than meet AO once for the same.
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02 February 2014
Thank you Pranav sir for your reply.
I would like to know that my company did not know about the FD amount and they calculated the tax according to the salary, which is below 5 lacs (they deducted the tax as 10% of tax payable). In that case if we add the FD amount the total income will go above 5 lacs. Therefore, 20% of the tax should be payed. Is this the problem in my tax return? Kindly reply ASAP
I would like to know that my company did not know about the FD amount and they calculated the tax according to the salary, which is below 5 lacs (they deducted the tax as 10% of tax payable). In that case if we add the FD amount the total income will go above 5 lacs. Therefore, 20% of the tax should be payed. Is this the problem in my tax return? Kindly reply ASAP
31 July 2024
Based on your description, it seems there are a few key issues with your tax return for AY 2013-14 that need to be addressed. Here's how you can resolve the situation:
### **1. Understanding the Notice u/s 139(9):**
- **Section 139(9)** of the Income Tax Act deals with defective returns. It is likely that your return was deemed defective because the total tax payable shown in your return was not fully paid by the time of filing.
### **2. Key Points to Address:**
1. **Verify the Tax Computation:**
- Ensure that all details from your Form 16 are accurately reflected in your ITR-1 form. This includes your salary, TDS, and any other deductions.
2. **Advanced Tax and Self-Assessment Tax:**
- **Advance Tax** and **Self-Assessment Tax** are amounts paid by the taxpayer. As a salaried individual, you generally don’t pay advance tax unless you have additional sources of income that exceed the basic exemption limit. Self-Assessment Tax is paid before filing the return if the tax payable exceeds the TDS already deducted.
- Ensure these fields are correctly filled. If you have not paid any advance tax or self-assessment tax, they should be zero.
3. **FD Interest and Income:**
- If you have an FD, the interest earned on it is taxable and should be included in your total income. If the FD interest was not included in your Form 16, you need to add it to your total income in the ITR.
- This additional income would increase your taxable income and might have led to a higher tax liability than what was covered by TDS.
4. **Tax Calculation:**
- If including the FD interest raises your income above ₹5 lakhs, the tax computation should reflect this, potentially increasing your tax rate from 10% to 20% for the income exceeding ₹5 lakhs.
### **Steps to Resolve the Issue:**
1. **Refile Your Return:**
- Correct your ITR-1 form by including the FD interest income.
- Make sure that the total tax payable includes this additional income and is consistent with the TDS deducted by your employer.
2. **Pay Any Additional Tax:**
- If your total tax liability (including the FD interest) exceeds the TDS deducted, pay the additional tax (if any) as self-assessment tax before resubmitting your return.
3. **Submit a Revised Return:**
- File a revised return for AY 2013-14 incorporating the FD interest and correcting the tax computation. Make sure the revised return is filed within the specified time limits to avoid penalties.
4. **Respond to the Notice:**
- Provide a detailed explanation in your response to the notice. Include a copy of the revised return, proof of additional tax payment, and any supporting documents regarding the FD interest.
### **Sample Response to the Notice:**
---
**Subject: Response to Notice u/s 139(9) for AY 2013-14**
Dear Sir/Madam,
Ref: Notice No. [Insert Notice Number] dated [Insert Date]
I acknowledge the receipt of the notice concerning the defective return for AY 2013-14. I am providing the following details and corrections:
1. **Nature of Defect:**
The notice states that the return was deemed defective as the tax determined as payable was not paid. Upon review, I realized that the interest earned from a Fixed Deposit (FD) was not included in the total income, which led to an incorrect tax calculation.
2. **Corrected Return:**
I have filed a revised return for AY 2013-14, including the FD interest income. The revised return accurately reflects the total income, including the FD interest, and calculates the correct tax liability.
3. **Payment of Additional Tax:**
I have paid the additional tax (self-assessment tax) due to the revised tax computation. The payment details are as follows: [Include Payment Details].
4. **Attached Documents:**
- Revised Income Tax Return
- Proof of Self-Assessment Tax Payment
- Bank Statement showing FD interest
I hope this clarifies the issue. Please let me know if any further information or documents are required.
Thank you for your consideration.
Sincerely,
[Your Name]
[Your Contact Information]
---
### **Conclusion:**
- Correct your return by including all sources of income and accurately calculating tax liability.
- Pay any additional tax if required and file a revised return.
- Respond promptly to the notice with the required information and documentation.
By addressing these points, you can resolve the issue and ensure compliance with tax regulations. If you need further assistance, consider consulting a tax professional for detailed guidance.
### **1. Understanding the Notice u/s 139(9):**
- **Section 139(9)** of the Income Tax Act deals with defective returns. It is likely that your return was deemed defective because the total tax payable shown in your return was not fully paid by the time of filing.
### **2. Key Points to Address:**
1. **Verify the Tax Computation:**
- Ensure that all details from your Form 16 are accurately reflected in your ITR-1 form. This includes your salary, TDS, and any other deductions.
2. **Advanced Tax and Self-Assessment Tax:**
- **Advance Tax** and **Self-Assessment Tax** are amounts paid by the taxpayer. As a salaried individual, you generally don’t pay advance tax unless you have additional sources of income that exceed the basic exemption limit. Self-Assessment Tax is paid before filing the return if the tax payable exceeds the TDS already deducted.
- Ensure these fields are correctly filled. If you have not paid any advance tax or self-assessment tax, they should be zero.
3. **FD Interest and Income:**
- If you have an FD, the interest earned on it is taxable and should be included in your total income. If the FD interest was not included in your Form 16, you need to add it to your total income in the ITR.
- This additional income would increase your taxable income and might have led to a higher tax liability than what was covered by TDS.
4. **Tax Calculation:**
- If including the FD interest raises your income above ₹5 lakhs, the tax computation should reflect this, potentially increasing your tax rate from 10% to 20% for the income exceeding ₹5 lakhs.
### **Steps to Resolve the Issue:**
1. **Refile Your Return:**
- Correct your ITR-1 form by including the FD interest income.
- Make sure that the total tax payable includes this additional income and is consistent with the TDS deducted by your employer.
2. **Pay Any Additional Tax:**
- If your total tax liability (including the FD interest) exceeds the TDS deducted, pay the additional tax (if any) as self-assessment tax before resubmitting your return.
3. **Submit a Revised Return:**
- File a revised return for AY 2013-14 incorporating the FD interest and correcting the tax computation. Make sure the revised return is filed within the specified time limits to avoid penalties.
4. **Respond to the Notice:**
- Provide a detailed explanation in your response to the notice. Include a copy of the revised return, proof of additional tax payment, and any supporting documents regarding the FD interest.
### **Sample Response to the Notice:**
---
**Subject: Response to Notice u/s 139(9) for AY 2013-14**
Dear Sir/Madam,
Ref: Notice No. [Insert Notice Number] dated [Insert Date]
I acknowledge the receipt of the notice concerning the defective return for AY 2013-14. I am providing the following details and corrections:
1. **Nature of Defect:**
The notice states that the return was deemed defective as the tax determined as payable was not paid. Upon review, I realized that the interest earned from a Fixed Deposit (FD) was not included in the total income, which led to an incorrect tax calculation.
2. **Corrected Return:**
I have filed a revised return for AY 2013-14, including the FD interest income. The revised return accurately reflects the total income, including the FD interest, and calculates the correct tax liability.
3. **Payment of Additional Tax:**
I have paid the additional tax (self-assessment tax) due to the revised tax computation. The payment details are as follows: [Include Payment Details].
4. **Attached Documents:**
- Revised Income Tax Return
- Proof of Self-Assessment Tax Payment
- Bank Statement showing FD interest
I hope this clarifies the issue. Please let me know if any further information or documents are required.
Thank you for your consideration.
Sincerely,
[Your Name]
[Your Contact Information]
---
### **Conclusion:**
- Correct your return by including all sources of income and accurately calculating tax liability.
- Pay any additional tax if required and file a revised return.
- Respond promptly to the notice with the required information and documentation.
By addressing these points, you can resolve the issue and ensure compliance with tax regulations. If you need further assistance, consider consulting a tax professional for detailed guidance.
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