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Section 139(9) error code 202

27 July 2019

The gross receipts shown in Form 26AS, on which credit for TDS has been claimed, are higher than the total of the receipts shown under all heads of income, in the return of income. Thus, while credit for TDS is being claimed, the corresponding receipts are not offered in the respective income schedules, to arrive at the taxable total income Hence, the return of income filed is regarded as defective, as provided in Explanataion (a) under section 139(9) error code 202 how do i respond to this notice?

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14 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160886 Points)
Replied 27 July 2019

You have to revise the figures of income declared under different heads in ITR, and match it with gross income as declared in form 26AS.

Once it is matched you can refile the ITR u/s. 139(9), or if not possible, then u/s. 139(5) of IT act....

1 Like

AKHILESH SAMANTA (Addl Director) (34 Points)
Replied 07 August 2019

while responding to u/s 139(9) the ITR 1 is asking for UNIQUE NO and Receipt No what is that sir ?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160886 Points)
Replied 07 August 2019

That is the details such as communication reference number provided on the notice. (check the defective notice for the details)

In addition to these, original return acknowledge no. & date is also required to be filled in the rectified return.

AKHILESH SAMANTA (Addl Director) (34 Points)
Replied 07 August 2019

SIR, but I tried all the combination of Original Ackn No 532725720260619 dated 26-06-2019 and CPC Communication Reference No.
CPC/1920/G5/1911308329. dt 6.08.2019. neither of the combinations is working. Please help me sir.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160886 Points)
Replied 07 August 2019

Unique no. 1911308329

date. 06/08/2019

AKHILESH SAMANTA (Addl Director) (34 Points)
Replied 07 August 2019

NOT WORKING SIR

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160886 Points)
Replied 07 August 2019

First of all download latest ITR1 utility version 4.1 released on 06.08.2019 and try.

AKHILESH SAMANTA (Addl Director) (34 Points)
Replied 07 August 2019

DOWNLOADED YESTERDAY ONLY SIR.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160886 Points)
Replied 07 August 2019

RE-DOWNLOAD NEW UTILITY AFTER VERIFYING YOU HAVE JAVA 8 VERSION ON SYSTEM.

As the schema is showing invalid, it is the defect in utility only.

Parthasarathy Perumal (6 Points)
Replied 04 February 2020

My form16 shows the salary and its tax details. Which I entered correctly. But I made a partial withdrawal from ICICI Prudential Life Insurance Company limited. ICICI team has also done a TDS of 1%. I have got defective response from CPC of error code 202. Can I mention the Life insurance withdrawal under Exempt income Sec 10(10D), Will that solve this problem. Because I dont know under which section I have to show this as income so that the 26AS report matches.Currently the ICICI Prudential Life insurance withdrawal shows as section 194DA as per 26AS. This is 9+years long term investment with premium of 2,000/month for which I took a partial withdrawal in 2018. Please suggest!!

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160886 Points)
Replied 05 February 2020

@ Parthasarathy::

Check properly your insurance policy... If it is exempt u/s. 10(10D), then how come TDS was deducted by Insurer?

Either you should get it rectified through insurance company, or accept the defect as suggested by CPC.

1 Like

Parthasarathy Perumal (6 Points)
Replied 05 February 2020

The money I received is for a Mutual fund investment under ICICI Prudential Life Insurance Pvt Ltd. I made partial withdrawl in 2008 and then in 2018. This is a13+years long term investment. ICICI team is not sharing me the split of investment and returns too. Even If I have to declare that, I dont see a section to declare this in ITR1. I with drew 3L. In that 2.3 lac is approx. investment and 70,000 is returns approx. So in this case, Do I need to pay 30% of tax of 3lac since I am now in 30% tax slab. But in this case, I am paying tax for my own after taxed salary invested and returned with not a big profit. so paying tax of 30% in this case is 1lac. so 80,000 return is gone and 20,000 of my investment which is after taxed salary is also gone. Please suggest!!

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160886 Points)
Replied 06 February 2020

As I said earlier, get the clarification from the insurer, about its tax liability.

If its exempted, the company should not deduct TDS as such its TDS return should be rectified, and you can declare the receipts under 'Exempted Income'.

But, I doubt, about its exemption under IT rule, in that case you can declare the gain portion in your ITR under 'Income from Other Sources' (Though the TDS is deducted over total withdrawal amount, but the tax liability arises only over the gain amount. The matter was clarified in last budget by Madam Sitaraman)

1 Like

Parthasarathy Perumal (6 Points)
Replied 06 February 2020

Hi Sir, Thanks a lot for the response. I have a reply from ICICI prudential that the ICICI Pru Life policy is TDS exempted and no tax is deducted. But not sure why they deducted anyway. I have responded to 139(9) notice with receipts under "Exempted income". So the ITR form calculated as TDS deducted with refund to me. Not sure what I have done is right.

Please help me with one more query sir. Is there a limit for number of times a 139(9) can be responded. If so, I will meet a Local Tax auditor next time and try to get it clarified if at all I get a defective response again.

With regards to the gain portion, ICICI Pru team is mentioning that since its 10years of investment, They dont have calculation of investment vs returns or gain split.