The Income Tax Act 1961, which governs the taxation of income in India, requires taxpayers to file their tax returns every year. The process of filing tax returns involves providing accurate information about the taxpayer’s income, deductions, and taxes paid. However, in some cases, taxpayers may make errors or omissions while filing their tax returns, which can lead to discrepancies in the tax calculations. To address such discrepancies, the Income Tax Act 1961 provides for a notice under Section 139(9) to be issued by the tax authorities. In this blog, we will discuss the notice under Section 139(9) and the error code 38 associated with it.
What is a Notice under Section 139(9)?
Section 139(9) of the Income Tax Act 1961 empowers the tax authorities to issue a notice to a taxpayer who has filed a tax return but has made some errors or omissions in it. The notice is issued to give the taxpayer an opportunity to correct the errors or omissions and file a revised tax return. The notice is typically issued within one year from the end of the financial year in which the tax return was filed.
What is Error Code 38?
When a taxpayer files a tax return online, the Income Tax Department’s computer system automatically checks the return for errors or discrepancies. If any such errors are found, the system assigns an error code to the return. Error Code 38 is assigned when there is an error or mismatch in the tax calculation provided by the taxpayer.
When a taxpayer receives a notice under Section 139(9) with Error Code 38, it means that the tax authorities have identified an error in the taxpayer’s tax calculation and are giving the taxpayer an opportunity to correct it.
What should you do if you receive a Notice under Section 139(9) with Error Code 38?
If you receive a notice under Section 139(9) with Error Code 38, you should take the following steps:
- Read the notice carefully: The notice will provide details of the error or discrepancy identified by the tax authorities. Read the notice carefully to understand the nature of the error.
- Rectify the error: Once you have identified the error, rectify it by filing a revised tax return. You can do this online on the Income Tax Department’s website or by visiting a tax professional.
- Submit the revised tax return: After making the necessary corrections, submit the revised tax return online or by post to the address provided in the notice.
- Follow up with the tax authorities: After submitting the revised tax return, follow up with the tax authorities to ensure that the error has been rectified and there are no further discrepancies.
In conclusion
a notice under Section 139(9) with Error Code 38 is issued to give taxpayers an opportunity to correct errors or discrepancies in their tax returns. If you receive such a notice, it is important to take prompt action to rectify the error and submit a revised tax return. Failure to comply with the notice can result in penalties and other legal consequences
Other Related Blogs: Section 144B Income Tax Act
Frequently Asked Questions (FAQs)
Q.1 What is a Notice under Section 139(9) of the Income Tax Act 1961?
A Notice under Section 139(9) is a communication sent by the Income Tax Department to a taxpayer who has filed their tax return, but there are errors or omissions in it. The notice gives the taxpayer an opportunity to rectify the errors or omissions and file a revised tax return.
Q.2 What is Error Code 38?
Error Code 38 is an error code assigned by the Income Tax Department’s computer system to a tax return when there is an error or mismatch in the tax calculation provided by the taxpayer.
Q.3 Why did I receive a Notice under Section 139(9) with Error Code 38?
You received the Notice under Section 139(9) with Error Code 38 because the Income Tax Department’s computer system identified an error or discrepancy in your tax return’s tax calculation.
Q.4 What should I do if I receive a Notice under Section 139(9) with Error Code 38?
If you receive a Notice under Section 139(9) with Error Code 38, you should read the notice carefully, rectify the error or discrepancy, submit a revised tax return, and follow up with the tax authorities to ensure that the error has been rectified.
Q.5 How much time do I have to respond to the Notice under Section 139(9) with Error Code 38?
Typically, you have 15 days from the date of receipt of the notice to respond to it. However, it is recommended to respond to the notice as soon as possible to avoid penalties and other legal consequences.
Q.6 What happens if I do not respond to the Notice under Section 139(9) with Error Code 38?
If you do not respond to the Notice under Section 139(9) with Error Code 38, the Income Tax Department may initiate penalty proceedings against you or take other legal action.
Q.7 Can I challenge the Notice under Section 139(9) with Error Code 38?
Yes, you can challenge the Notice under Section 139(9) with Error Code 38 by filing an appeal with the appropriate authority. However, it is recommended to first rectify the error or discrepancy and file a revised tax return before filing an appeal.
Q.8 Will I be charged any penalty for the error or discrepancy identified in the Notice under Section 139(9) with Error Code 38?
If you rectify the error or discrepancy and file a revised tax return within the specified time, you may not be charged any penalty. However, if you do not respond to the notice or fail to rectify the error, you may be liable to pay penalties and other charges as prescribed under the Income Tax Act 1961.
