Received Notice for IT dept for defect in return of Income (ITR-1)

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satya prakash

1 Points Joined December 2024

Received Notice for IT dept for defect in return of Income (ITR-1).

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.

when i check my form 26AS , there is a Tax Deducted at Source u/s 194IA/ 194IB /194M/194S (For Buyer/Tenant of Property /Person making payment to contractors or Professionals / Buyer of Virtual Digital against the flat i purchased and paid the TDS.

which ITR form i need to choose to while giving the response to Defective Notice .

Replies (2)

Rama chary Rachakonda

Master in Accounts & high court Advocate

9489 Points Joined December 2011

Defect in Return of Income (ITR-1)

The notice mentions that you've filed your income-tax return in Form ITR-1, but the TDS details in your Form 26AS show taxes deducted under sections that are not applicable to Form ITR-1.

Applicable ITR Form Considering the TDS sections mentioned (194IA, 194IB, 194M, and 194S), you may need to file your income-tax return in: ITR-2 ITR-2 is applicable for individuals and HUFs who have:

1. Income from more than one house property

2. Income from capital gains

3. Income from foreign assets

4. Income from business or profession (not eligible for presumptive taxation) ITR-3 ITR-3 is applicable for individuals and HUFs who have:

1. Income from business or profession (eligible for presumptive taxation)

2. Income from capital gains

3. Income from foreign assets Response to Defective Notice When responding to the defective notice:

1. _Acknowledge the defect_: Accept the defect mentioned in the notice.

2. _Explain the reason_: Provide a brief explanation for the defect, mentioning that you've filed Form ITR-1, but the TDS details in Form 26AS show taxes deducted under sections applicable to ITR-2 or ITR-3.

3. _Specify the corrective action_: Mention that you will file the revised return in the applicable form (ITR-2 or ITR-3) and provide the required details.

4. _Request for clarification (if needed)_: If you're unsure about any aspect, request clarification from the IT department.

Additional Tips 1. _Consult a tax professional_: It's recommended to consult a tax professional to ensure you're filing the correct form and providing the necessary details.

2. _Verify the TDS details_: Double-check the TDS details in your Form 26AS to ensure accuracy.

3. _File the revised return promptly_: File the revised return in the applicable form (ITR-2 or ITR-3) within the specified timeframe to avoid any penalties or interest.

Ayush

Executive

8960 Points Joined August 2011

You can choose ITR-2 if you have additional income sources like capital gains or multiple properties and do not have income from business or profession.

This form is suitable for reporting income from property transactions, capital gains, or other sources.