TaxSavvy for defective return notice

Defective return? Fix it in 15 days, not later.

We find the error code, correct the return and refile it in time.

If you wait: Not fixed in 15 days: the return counts as never filed (Sec 263(7), old 139(9))

How we get it done

Four steps, the same for every job. You see each one ticked.

  1. Information

    PAN. Notice, all pages, with DIN

  2. Discussion

    Which error code is in the notice?. Was any income or schedule left out?

  3. Forms

    Respond on e-Proceedings: agree and upload corrected return. Corrected ITR prepared and checked

  4. Deliverables

    Response acknowledgement. Corrected ITR copy

See what you get, free

Real formats, made with dummy data.

Questions, answered the CA way

Facts, Provisions and law, Analysis, Conclusion.

  • Section 270(1) (old 143(1)): Intimation and Demand
    Facts
    The most common IT notice, sent automatically by the CPC computer. Not a scrutiny notice. Not a raid. But if ignored or mishandled, the demand amount gets locked and interest begins. Most Sec 270(1), Income-tax Act 2025 (old Sec 143(1)) demands can be reduced to zero.
    Provisions and law
    Sec 270(1) (old 143(1)); Sec 270(2) (old 143(1)(a)); Sec 289 (old 156); Sec 154; Sec 263(5) (old 139(5))
    Analysis
    What triggers Sec 270(1) (old Sec 143(1)) demand: (1) AIS shows income not declared in ITR, most common. (2) TDS in Form 168 (old Form 26AS) not matching claimed TDS in ITR. (3) Deduction claimed exceeds limit. (4) Arithmetical mistake in ITR. (5) Carried-forward loss claimed without filing return in loss year. Three possible Sec 270(1) (old Sec 143(1)) outcomes: (A) Refund, CPC agrees with your return, issues refund. (B) No demand, no refund, CPC processing matches your return. (C) Demand, CPC finds discrepancy, raises a demand. Do NOT just pay the demand: Sec 270(1) (old Sec 143(1)) demands are often incorrect. In the most common case, FD interest in AIS that taxpayer forgot to declare, the demand is valid but the penalty is avoidable. In the second most common case, TDS credit mismatch due to PAN error by employer, demand is incorrect and should be rectified. Response options: (A) Agree, pay demand.
    Conclusion
    • Download Sec 270(1) (old Sec 143(1)) intimation PDF from IT portal, check exact demand amount and reason
    • Compare CPC's income computation vs your filed ITR line by line
    • Check AIS, identify which item CPC flagged as not declared
    • Check Form 168 (old Form 26AS) TDS credits vs TDS you claimed in ITR, any mismatch?
    Read the full answer
  • ITR for HNI: what Schedule AL requires and why it matters
    Facts
    Individuals with income above ₹50L must file Schedule AL (Assets and Liabilities) in their ITR. This discloses all assets, immovable property, financial assets, jewellery, vehicles, and liabilities.
    Provisions and law
    IT Act, Sec 263 (old 139) | ITR-2/3 Schedule AL
    Analysis
    What to include: All property at cost of acquisition (not market value). Listed investments at cost. Unlisted equity at cost. Bank deposits balance as of March 31. Gold and jewellery at cost. Loans taken. Why it matters: Schedule AL is now cross-referenced with property registration data, banking data, and MCA filings. Significant discrepancies between listed assets and known transactions trigger notices. Under-reporting assets in Schedule AL is as dangerous as under-reporting income.
    Read the full answer
  • Which ITR Form to File
    Facts
    Selecting the correct ITR form is the most common source of defective return notices. Wrong form = return treated as invalid.
    Provisions and law
    Sec 263(1) (old 139(1)); Rule 164 (old Rule 12); Sec 263(7) (old 139(9)); CBDT Notif
    Analysis
    ITR-1 (Sahaj): Salary from one employer + FD interest + one house property. Income below ₹50L. Cannot have capital gains, business income, or foreign assets. ITR-2: Salary from multiple employers, capital gains (MF/shares/property), foreign income, more than one house property, director in company, unlisted shares. ITR-3: Business or profession income + any other income. Partnership firms also use ITR-3 equivalent. F&O traders must use ITR-3. ITR-4 (Sugam): Presumptive income under Sec 58, Income-tax Act 2025 (old Sec 44AD; business, ₹3Cr limit), Sec 58 (old Sec 44ADA; professionals, ₹75L limit), Sec 58 (old Sec 44AE; transport). Cannot have capital gains or foreign assets. ITR-5: Partnership firms, LLPs, AOPs, BOIs, not for individuals. ITR-6: Companies (not claiming 11/12 exemption). ITR-7: Trusts, political parties, research associations.
    Conclusion
    • Identify ALL income sources for the year, salary, FD interest, MF redemptions, property sale, freelance
    • Download AIS, check if any income shown that you did not know about
    • Check if you are director in any company or hold unlisted shares (ITR-2 mandatory if yes)
    • Check if F&O trading happened during year (ITR-3 mandatory)
    Read the full answer
  • Section 270(8) (old 143(2)): Scrutiny Notice
    Facts
    This is NOT automated, a human officer has selected your return for detailed examination. Specific income, deduction, or transaction is under review. Must be responded to with documentary evidence within the timeline given.
    Provisions and law
    Sec 270(8) (old 143(2)); Sec 270(10) (old 143(3)); Sec 144; Faceless Assessment Scheme 2020; Sec 271(1)(c)
    Analysis
    Why your return was selected: (1) Large refund claim, officer verifies legitimacy. (2) High deductions claimed relative to income (e.g. Sec 123, Income-tax Act 2025 (old Sec 80C) of ₹1.5L on ₹3L income). (3) AIS shows transactions not declared (property purchase, large FD). (4) Specific issue risk profiling by IT department. (5) Information from third party (bank, registrar). Faceless assessment, how it works: Notice arrives on IT portal (also email). You respond online through IT portal → e-Proceedings → Response. Upload documents in PDF. No personal appearance. Officer is anonymous, from a different city. National Faceless Assessment Centre (NFAC) coordinates. What to submit: Depends on the specific query in the notice. Common documents: Bank statements, salary slips + Form 130 (old Form 16), investment proofs (ELSS receipts, PPF passbook), home loan certificate, rent receipts, capital gains statement, property registration documents.
    Conclusion
    • Login to IT portal → e-Proceedings → View notices (Sec 270(8) (old Sec 143(2)) notice visible)
    • Read notice carefully, identify exactly which item / transaction is under scrutiny
    • Note response deadline from notice, calendar the date immediately
    • Gather all documents related to the queried item (not your entire file)
    Read the full answer

Defective return? Fix it in 15 days, not later.

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