Income tax returns (ITR) filing: Beware! Don't file a 'Defective return'? How to get it right

Income tax returns (ITR) filing: Section 139(9) provides the list of situations in which the return of income filed by the taxpayer can be treated as defective return. If the Assessing Officer finds the return of income to be defective under section 139(9), then he may intimate such defect to the taxpayer and may give an opportunity to him to rectify such defect. 

Income tax returns (ITR) filing: The taxpayer must rectify defects in the income tax return within a period of 15 days or within period the Assessing Officer may allow. If the defect is not rectified within the period of 15 days then the return will be treated as an invalid return and the provisions of the Act shall apply as if the taxpayer had failed to furnish the return. 

Income tax returns (ITR) filing: A return of income shall be regarded as defective, unless all the following conditions are fulfilled:  1. The annexures, statements and columns in the return of income relating to computation of income chargeable under each head of income, computation of gross total income and total income have been duly filled in.  2. The return is accompanied by a statement showing the computation of the tax payable on the basis of the return.  3. The return is accompanied by the report of the audit referred to in section 44AB, or, where the report has been furnished prior to the furnishing of the return, by a copy of such report together with proof of furnishing the report.  4. The return is accompanied by proof of the tax, if any, claimed to have been deducted or collected at source and the advance tax and tax on self-assessment, if any, claimed to have been paid. 

Income tax returns (ITR) filing: Where the return is not accompanied by proof of the tax, if any, claimed to have been deducted or collected at source, the return of income shall not be regarded as defective if : 1. A certificate for tax deducted or collected was not furnished under section 203 or section 206C to the person furnishing his return of income. 2. Such certificate is produced within a period of two years specified under subsection (14) of section 155.  

Income tax returns (ITR) filing: Where regular books of account are maintained by the taxpayer, the return is accompanied by copies of: 1. Manufacturing account, trading account, profit and loss account or, as the case may be, income and expenditure account or any other similar account and balance sheet.  2. In the case of a proprietary business or profession, the personal account of the proprietor; in the case of a firm, association of persons or body of individuals, personal accounts of the partners or members and in the case of a partner or member of a firm, association of persons or body of individuals, also his personal account in the firm, association of persons or body of individuals.  

Income tax returns (ITR) filing: Where the accounts of the taxpayer have been audited, the return is accompanied by copies of the audited profit and loss account and balance sheet and the auditor's report and, where an audit of cost accounts of the taxpayer has been conducted under section 233B of the Companies Act, 1956 [now Section 148 of Companies Act, 2013], also the report under that section.  

Income tax returns (ITR) filing: Where regular books of account are not maintained by the taxpayer, the return is accompanied by a statement indicating the amounts of turnover or, as the case may be, gross receipts, gross profit, expenses and net profit of the business or profession and the basis on which such amounts have been computed, and also disclosing the amounts of total sundry debtors, sundry creditors, stock-in-trade and cash balance as at the end of the previous year.  

Income tax returns (ITR) filing Note: As per the current norms prescribed by CBDT vide Income-tax Rules, 1962 for filing return of income, no documents shall be attached along with the Return of Income. Hence, documents like computation of income, balance sheet and accounts, audit report, TDS certificate, tax payment challan, proof of investment, etc., are not to be attached along with the return of income. No penalty will be levied for non-submission of these documents along with the return of income and the return will not be treated as defective due to non-attachment of aforesaid documents, statements, etc.