How to Correct Errors in Your ITR Filing Using Section 139 and Avoid Penalties
- Asharam Swain
- 6 days ago
- 9 min read
Errors in income tax returns—whether it's missing income, incorrect deductions, or selecting the wrong ITR form—can lead to notices, penalties, or invalidation of your return. Section 139 of the Income Tax Act, 1961, offers specific provisions to correct such issues. These include revised, defective, and updated return filings. Acting within the prescribed timelines is essential to avoid scrutiny and maintain compliance. For individuals looking to file accurate returns without errors, platforms like TaxBuddy simplify the process through guided, expert-supported filing experiences.
Table of Contents
How Section 139 Helps You Fix ITR Filing Errors
Section 139 provides structured mechanisms to fix different types of return errors:
Section 139(5) allows you to revise your return if you discover any mistake after filing.
Section 139(9) deals with defective returns identified by the Income Tax Department.
Section 139(8A) introduces ITR-U, a tool for updating returns beyond the regular deadlines.
These subsections ensure that taxpayers can correct errors without facing legal complications, provided the timelines and procedures are followed properly.
Filing a Revised Return Under Section 139(5)
Revised returns offer an easy way to fix omissions or wrong entries in your original ITR. If you realize your return had incorrect income disclosures or missed deductions, this provision allows you to file an updated version.
Key Details:
Who can file: Anyone who has filed an original or belated return and wants to make corrections.
Deadline: Up to 31st December of the assessment year or before the completion of assessment, whichever comes first.
Steps:
Log in to the Income Tax e-filing portal.
Choose ‘File Revised Return’.
Select the correct assessment year and input accurate details.
Submit and e-verify the revised return.
Filing a revised return within the allowed period helps maintain accurate tax records and avoids unnecessary scrutiny.
Responding to a Defective Return Notice Under Section 139(9)
A defective return notice under Section 139(9) is issued when the Income Tax Department finds your return incomplete or inconsistent.
Common Errors Include:
Missing PAN details.
Incorrect ITR form used.
Mismatch in tax credits (Form 26AS vs filed return).
Unverified returns.
Response Process:
Visit the e-filing portal.
Go to ‘Pending Actions’ or ‘e-Proceedings’.
Review the defect and choose to Agree or Disagree.
If agreeing, correct and resubmit the return within 15 days.
If disagreeing, provide valid supporting documents with a reason.
Failure to correct a defective return on time leads to your ITR being treated as invalid—resulting in interest, penalties, or ineligibility for carry-forward losses.
Filing an Updated Return Using Section 139(8A) – ITR-U
The ITR-U (Updated Return) is for cases where the regular correction deadlines have passed. It's a last-resort option for taxpayers who want to rectify past errors and come clean with their filings.
When to Use:
Missed reporting income.
Incorrectly claimed deductions.
Other substantial filing errors.
Conditions:
Cannot be used to claim a refund or reduce tax liability.
Can be filed up to 48 months from the end of the relevant assessment year.
Additional tax is payable—penalty ranges from 25% to 50% of the additional tax in the first year, and up to 70% if delayed further.
Filing Steps:
Calculate the additional tax and interest.
Pay outstanding dues.
File ITR-U on the income tax portal and complete e-verification.
This provision is ideal for those who want to avoid future litigation by voluntarily updating their filings.
Step-by-Step Guide to Correct Errors in Your ITR Filing
Review Filed ITR: Compare details with Form 16, Form 26AS, and AIS/TIS.
Identify the Error Type: Determine if it’s a mistake, omission, or system-detected defect.
Choose the Right Route:
Section 139(5) for revisions within the assessment year.
Section 139(9) if a defect notice is issued.
Section 139(8A) if both of the above are no longer applicable.
Calculate Dues: If additional income is reported, calculate and pay the extra tax and penalties.
Submit Corrected Return: File using the Income Tax portal and e-verify it.
Save Acknowledgment: Always download and store the ITR-V for future reference.
How to Avoid Penalties When Filing Corrected Returns
1. File Corrections Within Prescribed Timelines to Avoid Default Status
Time is a critical factor in income tax compliance. Section 139 provides specific deadlines for revised returns, defective return responses, and updated return filings. Missing these can convert a minor error into a serious non-compliance issue.
For revised returns under Section 139(5), the deadline is 31st December of the assessment year or before assessment completion.
For defective return notices under Section 139(9), the response window is 15 days.
For ITR-U under Section 139(8A), the time limit extends to 48 months, but penalties increase with delay.
Adhering to these timelines helps ensure your return remains valid and avoids interest, penalties, or disqualification from claiming benefits like refund eligibility or loss carry-forward.
2. Always Cross-Verify Income and Deductions with AIS and Form 26AS
Mismatch in income details or tax deductions is one of the most common triggers for tax notices. Before filing or revising your return, thoroughly cross-check:
AIS (Annual Information Statement) – Contains comprehensive data on income, dividends, interest, and financial transactions reported by third parties.
Form 26AS – Summarizes TDS, advance tax, and self-assessment tax payments linked to your PAN.
Ensure that your declared income, TDS claims, and deductions align with these documents. Inaccuracies or omissions can result in defective returns, notices, or even assessments questioning the validity of your claims.
3. Make Use of Platforms Like TaxBuddy, Which Offer Automated Checks and Real-Time Error Detection
TaxBuddy’s intelligent platform is designed to catch errors before they become a problem. Features include:
Auto-import of AIS, 26AS, and Form 16 data to minimize manual entry mistakes.
Real-time alerts for form mismatches, unreported income, or incorrect deductions.
Guided filing experience with expert suggestions tailored to your tax profile.
Using such platforms not only reduces human error but also ensures that your return complies with the latest tax rules and e-filing standards. This minimizes the risk of penalties and repeat corrections.
4. Respond to Defective Return Notices Within 15 Days of Issue
If the Income Tax Department flags your return as defective under Section 139(9), act fast. Ignoring or delaying the response beyond the 15-day window results in your return being treated as invalid, which has the same consequences as non-filing:
Loss of carry-forward benefits (like capital or business losses),
Inability to revise or rectify the return further,
Possible imposition of penalties or interest on outstanding dues.
Log into the portal promptly, review the notice under 'e-Proceedings' or 'Pending Actions', and take corrective action—either by revising the return or submitting a justified reply.
5. Don’t Delay ITR-U if You Discover Income Discrepancies—Penalties Grow with Time
The ITR-U form under Section 139(8A) gives you a second chance to rectify serious filing mistakes—even after deadlines for revision and defective returns have passed. However, the longer you wait, the steeper the cost:
If filed within 12 months, you pay a 25% penalty on additional tax.
Filing between 12 to 24 months results in a 50% penalty.
Delays beyond 24 months can attract up to 70%.
If you discover unreported income, incorrect deductions, or any compliance lapses, act swiftly. Filing an ITR-U early shows proactiveness and can help reduce the total tax burden while safeguarding against future scrutiny or prosecution.
Conclusion
Section 139 provides relief to taxpayers by allowing timely corrections across various scenarios. Whether it's through a revised return, responding to a defect notice, or updating past returns via ITR-U, each path helps preserve compliance and prevent penalties. For anyone unsure about which correction path to take or how to proceed, using a tax-filing platform like TaxBuddy ensures peace of mind. The app offers a user-friendly interface and expert assistance, guiding you through every step of the correction process.
For anyone looking for assistance in tax filing, it is recommended to download the for a simplified, secure, and hassle-free experience.
FAQs
Q1. Does TaxBuddy offer both self-filing and expert-assisted plans for ITR filing, or only expert-assisted options?
TaxBuddy offers both self-filing and expert-assisted plans to cater to different user needs. The self-filing option is ideal for those confident in managing their tax returns independently using a simplified interface with automated checks. On the other hand, the expert-assisted plan provides personalized support from tax professionals—ensuring accurate computation, error-free documentation, and timely submission, especially useful for complex returns or high-income individuals.
Q2. Which is the best site to file ITR?
The official Income Tax e-filing portal is mandated by the government for ITR filing. However, platforms like TaxBuddy are preferred by many users for their user-friendly interface, real-time validation of entries, automatic error checks, and guidance throughout the process. For those seeking a seamless, intuitive experience—especially first-time filers or those unsure about deductions and sections—TaxBuddy often becomes the better choice.
Q3. Where to file an income tax return?
An income tax return can be filed directly through the Income Tax Department’s e-filing portal or through authorized third-party tax filing platforms such as TaxBuddy. These platforms offer additional features like mobile-based filing, expert consultations, auto-import of data, and reminders—making them a practical alternative for modern taxpayers.
Q4. Can I revise my ITR if I missed reporting some income?
Yes, if you've already filed your original or belated return and later discover unreported income, you can file a revised return under Section 139(5). This allows you to correct the omission without attracting penalties, provided you file the revision by 31st December of the assessment year or before your assessment is completed, whichever is earlier. This flexibility helps maintain tax compliance while avoiding potential scrutiny or notices.
Q5. What should I do if I receive a defective return notice under Section 139(9)?
If you receive a defective return notice, it means the Income Tax Department has identified inconsistencies or missing information in your return. You should:
Log in to the Income Tax portal,
Navigate to 'Pending Actions' or 'e-Proceedings',
Read the defect description,
Choose to either agree (and revise the return within 15 days) or disagree (with valid reasons and supporting documentation).
If the defect isn’t addressed within 15 days, your return will be treated as invalid, which can lead to penalties and loss of filing benefits.
Q6. What is ITR-U and when should I use it?
ITR-U is an Updated Return introduced under Section 139(8A). It is designed for situations where a taxpayer realizes an error or omission in their return after the window for filing a revised return or responding to a defect notice has closed. You can file ITR-U within 48 months from the end of the relevant assessment year. However, it cannot be used to claim additional refunds or reduce tax liability. Instead, it must declare previously omitted income, along with paying additional tax and penalty ranging from 25% to 70%.
Q7. Will I be penalized for correcting my ITR?
In general, correcting your ITR using a revised return (Section 139(5)) or addressing a defective notice (Section 139(9)) does not attract any penalty if done within the allowed time. However, filing an updated return (ITR-U) under Section 139(8A) does involve a penalty on the additional tax payable—25% if filed within the first year, and 50% to 70% if filed in subsequent years. Early action reduces financial consequences.
Q8. Can I file a revised return if I already filed a belated return?
Yes, the revised return option under Section 139(5) applies to both original and belated returns. Even if your first submission was made after the regular deadline (31st July for most taxpayers), you can still revise it provided it’s within the revision window—i.e., by 31st December of the relevant assessment year or before assessment completion.
Q9. How many times can I revise my return?
There is no limit to the number of times you can revise your income tax return, as long as it is done within the permissible period under Section 139(5). However, every revision replaces the previous one, and it is advisable to finalize your calculations carefully before filing the revised return to avoid multiple submissions and confusion during assessments.
Q10. Can I change the ITR form while revising?
Yes, if you used the wrong ITR form while filing your original return, you can switch to the correct one during the revision process. For example, if you mistakenly filed ITR-1 but had capital gains, you can revise your return using ITR-2. Just ensure that the revised form accurately reflects your income sources and deductions.
Q11. What if I miss the 15-day window for a defective return?
If you fail to respond to a defective return notice under Section 139(9) within 15 days, your return will be deemed invalid. This is equivalent to non-filing, which may lead to:
Penalties,
Interest on unpaid taxes,
Loss of carry-forward of losses, and
Ineligibility for certain deductions.
If still within the allowed filing window, you may need to file a fresh belated or updated return.
Q12. How can TaxBuddy help me avoid errors and penalties?
TaxBuddy simplifies ITR filing by combining technology with professional expertise. It:
Validates entries in real-time to prevent common errors,
Recommends the right ITR form based on your income type,
Offers expert-assisted reviews to eliminate filing mistakes,
Sends timely alerts for deadlines, notices, and revisions.
This ensures your return is always compliant and reduces the likelihood of receiving notices or incurring penalties. Whether you prefer self-filing or need guided support, TaxBuddy provides a secure and reliable solution.
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