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Defective ITR under section 139(9) due to EPF withdrawal

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achanaagrik

23 Points Posted on 02 July 2023

"If the receipts as per Form 26AS is not offered in the year in which the TDS credit is claimed, then the claim of TDS will be restricted on the basis of proportion of the receipts offered in the return of income to the receipts in Form 26AS, as per Rule 37BA of the IT Rules. The correction of this defect is to be made by filing the corrected return by offering all the receipts as per form 26AS or by claiming the TDS proportionately as above."

Got this message probably because the amount on Form 26AS includes the EPF that includes employee contribution also. Whereas in the ITR, only the interest on EPF (Other income) & Employer contribution + its interest (salaried head) were added.

How to resolve this?

Replies (2)

Quick Summary

This discussion addresses an Income Tax Return (ITR) defect under section 139(9) arising from EPF withdrawals. The issue occurs when Form 26AS includes EPF amounts (both employee and employer contributions) that weren't fully reflected in the ITR. The advice suggests correcting the return by either offering all Form 26AS receipts or claiming TDS proportionately, as per Rule 37BA. It highlights the importance of accurately reporting EPF interest and employer contributions in the correct ITR sections.