Defective e-ITR filed without payment of tax and Standard Operating Procedure

As per section 139(9) of Income Tax Act, 1961, the assessing officer may treat a return of income as defective if certain pre-requisites are not complied. Explanation to the section list out the conditions where a return can be regarded as defective.

In view of the large cases of ITRs being filed without payment of self assessment tax, the Finance Act, 2013 has inserted a new clause (aa) to the said explanation to make a return defective if the tax together with interest if any payable in accordance with provisions of section 140A has not been paid on or before the date of furnishing of the return.  
                            
Read the text of section 139(9) >>
Now a detailed Standard Operating Procedure (SOP) for handling such E-filed Returns where self assessment tax is not paid has been approved by CBDT and assessing officers have been directed to follow the same with respect to such defective returns.

As per SOP, the jurisdictional AO should issue notice u/s 139(9) and consider giving further period if an application requesting the same is made by assessee. The assessee after payment of self assessment tax will have to upload their revised/ corrected returns.

The following procedure has been prescribed:
1. CPC during processing will identify such defective returns & issue notice under section 139
    (9) to the assessee asking them to upload corrected return within 15 days.
2. Cases where such defects are not rectified within said 15 days time, shall be forwarded to
    the jurisdictional assessing officer every month.
3. Jurisdictional AO should issue follow-up letters to such assessee and ensure that tax is paid
    and uploading of corrected return on the e-filing portal.
4 . Assessee after payment of unpaid tax will have to file a e-revised/ corrected return with tax
    details.
5. Directorate of Systems will keep & refresh the list of such cases every fortnight. The revised
    list of cases shall be forwarded to the jurisdictional AOs every month for further follow up.

Accordingly, the requirement of CPC reference number for filing revised return has been suggested to be removed in cases where notice has been issued by jurisdictional assessing officer.
Download the copy of Instruction >>