When the Income Tax Department thinks that the return of income tax filed by the assessee is a defective

one, it might intimate the defect to the assessee and provide an opportunity to rectify the same within 15 days. If the assessee rectifies the same within the said period, then the return becomes a valid return. A defective return has many implications. When is a return treated as a defective one? According to the recent changes in the Budget, when a taxpayer files an income tax return without making payment of the self-assessment tax, it is considered as a defective return. According to section 139(9) of the Income Tax Act an Assessing Officer is entitled to call upon the assessee to rectify the defective return filed by him. According to this subsection, a return of income is considered as defective if the following conditions are not satisfied. 1. Annexure and Statements: The annexure and statements filed along with the return of income in connection with the computation of income chargeable under every head of income, computation of gross income and total income are properly filled in. 2. Evidence of the compulsory deposit: The evidence of the compulsory deposit amount, if there is any claimed under the compulsory deposit scheme. 3. Copies of accounts: Where books of accounts are maintained by an assessee, copies of the said account and balance sheet are to be filed along with the return of income. In the case of proprietary business the personal accounts of the proprietor are to be filed. The basis on which the said amounts are computed has to be given. The statement should disclose the amounts of total debtors and creditors, and cash balance till the end of the previous year. 4. Audit report: Where the accounts of an assessee are audited, copies of the said profit along with the loss account and balance sheet are to be filed. 5. Evidence of the tax deducted: The evidence of the tax claimed to have been deducted at source and the advance tax and tax on self-assessment, claimed to have been paid. But where the return does not accompany evidence of the tax, which is deducted at source, the return of income will not become defective if a certificate for tax deducted at source was not furnished to the person furnishing his return. The certificate has to be given within 2 years from the end of the year in which the income is taxable. Implications of a defective return: When an income Tax return is considered as an invalid one, such provisions of the Income Tax Act become applicable as if the assessee had not filed the return.

Discretionary power of the Assessing Officer: Where the assessing officer is of the opinion that the return of income filed by the assessee is a defective one, he has the power to intimate the defect to the assessee and provide him an opportunity to rectify it within fifteen days from the date of intimation. The said time can be extended by the Assessing Officer. ITR Today is growing as a leading website to provide updates on filing taxes online , defective return and income tax guidelines get your tax related queries answered by our income tax consultants.