Defective notice u/s 139(9) Error Code : RULE_37BA_194M_001 - 139 9

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This query is : Resolved

Quick Summary

If you've received a defective notice under Section 139(9) of the Income Tax Act due to TDS on crypto transactions, you likely filed the wrong ITR form. ITR-1 is not suitable when TDS is deducted under sections like 194S (for crypto). You should consider filing ITR-2 and reporting your crypto transactions in the Schedule VDA.

Actyreyansh

Actyreyansh (Querist)

08 August 2024 Hi, I am salaried person. I did some trading in crypto through ZEBPAY and my TDS deducted RS 91.
I have filed ITR-1 but I got Defective notice u/s 139(9) from INCOMETAX department.
Below is the description
Error Description
You have filed your income-tax return in form ITR-1. As per TDS details in your Form 26AS, taxes have been deducted under sections 194IA/194IC/194M/194S/194C/194B/194BB/194BA, etc. of the Income-tax Act, 1961. These sections are reflected as (4IA/4IC/94M/94S/94C/94B/4BB/4BA) in Form 26AS. These sections imply heads of income for which form no. ITR-1 is not the appropriate form. Thus, the required schedules for reporting incomes pertaining to said TDS sections are not present in your return of income filed in form no. ITR-1.

Kindly let me know which ITR from that I need to file. MY salary is less then 50 Lac .

Thanks & Regards
Rajesh J

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

08 August 2024 File ITR 2.

Actyreyansh

Actyreyansh (Querist)

08 August 2024 Thank you for your Reply.
My salary is less then 50 LAC. Is it okay to file ITR-2.

Eligibility Criteria to File ITR-2 Form
If you fulfil the following criteria, then it is mandatory to file the ITR-2 form:

Any Indian individual or member of the HUF (Hindu Undivided Family)
Salaried or pensioned individuals having income exceeding Rs.50 lakhs.

Kindly advise.

Thanks & Regards
Rajesh J

Actyreyansh

Actyreyansh (Querist)

08 August 2024 kindly advise.

Thanks & Regards
Rajesh J

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

08 August 2024 When there is any crypto transaction, ITR 1 is not eligible.
File ITR 2 & declare the crypto transaction in Schedule VDA.

Actyreyansh

Actyreyansh (Querist)

08 August 2024 Thank you, for your suggestion.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

08 August 2024 You are welcome.