Have you ever thought about sections 139(9),139(8A) and 154? Ever wondered what is it about? To help you out, in this article, we have discussed elaborately about these sections. So, without further ado, let us get started.
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If the Assessing Officer (AO) finds something wrong with the tax return you filed, they can issue a notice under Section 139(9), referring to it as a “defective return.”
\nKey Points:
\n\u2022 Problem Identification: The AO identifies issues like missing details, using the wrong form, or incomplete information.
\n\u2022 15-Day Response Window: You are given 15 days to correct the issue. If you don\u2019t fix the mistake or respond within this time frame, your return will be treated as invalid, as if you never filed it.
\n\u2022 Opportunity to Fix: If you manage to fix the issue after the 15 days but before the AO finishes reviewing your return, they may still accept the correction.
\n\u2022 Disagreeing with the AO: If you don\u2019t agree with the mistake the AO identified, you can respond, explaining why the observation is incorrect. However, this requires a solid understanding of tax laws. In many cases, taxpayers simply correct the mistake to avoid further complications.
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Mistakes happen. Sometimes, taxpayers forget to include income or deductions, or maybe they apply the wrong tax provision. Section 154 allows you to correct these “apparent mistakes.”
\nWhat Counts as a Mistake?
\n\u2022 Simple math or clerical errors
\n\u2022 Misunderstanding or misreading clear laws
\n\u2022 Using the wrong provisions of the law
\n\u2022 Not following a higher court’s decision
\n\u2022 Overlooking important tax rules
\nKey Points:
\n\u2022 Correcting Mistakes: You or the tax department can request a correction.
\n\u2022 Taxpayer Request: If you notice the mistake, you can request a correction, and the department must address the correction within 6 months from the end of the month in which your request was received either to approve or reject the corrections.
\n\u2022 Tax Department’s Request: If the tax department notices the mistake, they can correct it within 4 years from the end of the financial year in which the mistake was made.
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The Finance Act 2022 introduced Section 139(8A), allowing you to file an updated return if you made an error or missed the deadline for filing your tax return under Section 139(1), 139(4), or 139(5).
\nKey Points:
\n\u2022 Filing an Updated Return: You can file an updated return (Form ITR-U) to fix errors or omissions or even file a return if you missed the deadline.
\n\u2022 Window for Filing: You can file this updated return within 24 months from the end of the relevant assessment year (AY). For example, for AY 2024-25, you can file an updated return until March 31, 2027.
\n\u2022 Limit: You can file an updated return only once for each assessment year.
\nSpecific Conditions:
\n1. Loss Return: If your updated return shows a loss, you can\u2019t file it. However, if you\u2019ve filed a loss return on time and now wish to show income instead of the loss, you can file an updated return.
\nIf the loss (or any part thereof) carried forward under Chapter VI, unabsorbed depreciation carried forward under subsection (2) of section 32, or tax credit carried forward under section 115JAA or section 115JD needs to be reduced for any subsequent previous year as a result of filing a return of income under this sub-section for a previous year. An updated return must be furnished for each such subsequent previous year.
\n2. Impact on Tax Liability: If filing the updated return reduces your tax liability or increases the refund you’re due, you can\u2019t use this option. The law does not allow you to lower your tax liability or claim a higher refund with an updated return.
\n3. Ongoing Actions by Tax Authorities: You cannot file an updated return if there\u2019s any ongoing or completed action by the tax authorities, such as:
\no A survey under Section 133A
\no A notice issued for the seizure or requisition of money, bullion, jewellery, books of accounts, or documents under Sections 132 or 132A.
\n4. Ongoing Assessments or Reassessments: If your case is under an ongoing assessment, reassessment, revision, or re-computation (either in progress or completed), you cannot file an updated return.
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\nIn Summary:
\n\u2022 Section 139(9): If your return is deemed defective, you have 15 days to correct it. If you don\u2019t respond in time, it could be treated as invalid.
\n\u2022 Section 154: You can correct apparent mistakes (like clerical or computational errors) within 6 months (taxpayer’s request) or 4 years (tax department\u2019s action).
\n\u2022 Section 139(8A): This allows you to file an updated return within 24 months to fix mistakes or omissions, but with certain restrictions like not reducing your tax liability or increasing refunds.
\nIf you ever find yourself dealing with any of these issues, remember that the tax authorities provide a window to correct mistakes, but acting quickly and understanding the rules is crucial to avoid further complications.
\nDo you have more questions, or need help filing your return? Are you looking for a CA in Bangalore? If yes, then get in touch with us.<\/p>\n","protected":false},"excerpt":{"rendered":"
Have you ever thought about sections 139(9),139(8A) and 154? Ever wondered what is it about? To help you out, in this article, we have discussed elaborately about these sections. So, without further ado, let us get started. _______________________________________________________________________________________ 1. Section 139(9): Defective Income Tax Return If the Assessing Officer (AO) finds something wrong with the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-6731","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"yoast_head":"\n