You Filed an ITR But Got a Defective Return Notice? Let’s Fix It

Bhavika Rajput
2 days ago
9 min read

Filing your Income Tax Return (ITR)is an essential task, but sometimes the process does not go as smoothly as anticipated. One issue that taxpayers may face is receiving a Defective Return Notice under Section 139(9) of the Income Tax Act. This notice typically arises when there are discrepancies, missing information, or errors in the filed return. It is crucial to address such notices promptly to avoid penalties or further complications. Let us explore what a defective return notice is, how to respond to it, and the consequences of failing to rectify the issues raised by the notice.

What is a Defective Return Notice under Section 139(9)?
Time Limit to Respond to the Defective Return Notice
How to Fix a Defective Return?
Consequences of Not Rectifying a Defective Return
Additional Note on Bank Account Details in ITR Filing
Conclusion
FAQs

What is a Defective Return Notice under Section 139(9)?

A Defective Return Notice is issued by the Income Tax Department when your filed ITR is found to be incomplete or contains errors that make it non-compliant with tax laws. Section 139(9) of the Income Tax Act deals with defective returns, outlining the criteria for when a return is considered defective. Common reasons for receiving a defective return notice include:

Incomplete or missing information: Missing mandatory fields, such as personal details, income details, or bank account information.
Mismatched TDS credits: If the Tax Deducted at Source (TDS) amounts reported in your return do not match those available in the department’s records.
Incorrect or incomplete income details: Errors in reporting your income, deductions, or tax calculations.
Signature issues: Failure to digitally sign the return or submit the required documents.

When the Income Tax Department detects any of these issues, they issue a notice under Section 139(9) for you to rectify the errors within a specified time frame.

Time Limit to Respond to the Defective Return Notice

Once a defective return notice is issued under Section 139(9), you are given a specific timeframe to respond and correct the errors. Typically, the notice will allow you 15 days from the date of issue to rectify the issues identified in the return. If you fail to respond within the given time frame, the department may treat the return as invalid, and you could be required to file a new return, potentially attracting penalties.

It is important to note that the time limit for responding to a defective return notice may vary depending on the specific circumstances of the case. You must carefully review the notice and respond promptly to avoid further delays or penalties.

How to Fix a Defective Return?

To fix a defective return, you need to follow the steps outlined by the Income Tax Department in the notice. Here’s a step-by-step guide to help you resolve the issue:

Review the Defective Return Notice: Carefully read the notice issued under Section 139(9) to understand the specific issues with your return. The notice will typically highlight the errors or missing information that need to be rectified.
Log in to the Income Tax e-Filing Portal: Visit the official Income Tax Department’s e-filing portal and log in using your credentials (PAN, password, and CAPTCHA).
Select the Correct ITR Form: Navigate to the ‘e-file’ section and choose the appropriate ITR form based on your filing requirements.
Revise the Return: Once you select the correct form, you will be prompted to revise your return. Make the necessary corrections, such as updating missing details, correcting income figures, or matching TDS credits.
Re-upload the Corrected Return: After making the necessary changes, submit the corrected ITR. Ensure that all details are accurate, and any missing information is included.
Digitally Sign the Return: Don’t forget to digitally sign your return or use the EVC (Electronic Verification Code) to authenticate it. This step is crucial for the validity of your return.
Track the Status: After submitting the revised return, check the status on the Income Tax portal to ensure that your return is accepted and the issues are resolved.

Consequences of Not Rectifying a Defective Return

Failing to rectify a defective return within the given time frame can lead to several consequences, including:

Rejection of the Return: If the defective return is not fixed in time, the Income Tax Department may reject your return, and you will be required to file a fresh return.
Penalties: Delayed filings or errors that are not rectified may result in penalties under sections 234A, 234B, and234C. Penalties can be imposed for incorrect reporting, late submission, or non-compliance with filing requirements.
Increased Scrutiny: A defective return could trigger increased scrutiny or an audit by the tax authorities, leading to additional paperwork, verification, and potential delays in processing your return.
Loss of Benefits: Failing to rectify errors may lead to the disallowance of deductions, exemptions, or other tax benefits you may have claimed, increasing your tax liability.

To avoid these consequences, it is essential to promptly address the defective return notice and ensure that all discrepancies are corrected.

Additional Note on Bank Account Details in ITR Filing

One common issue that can lead to a defective return notice is missing or incorrect bank account details. When filing your ITR, it is mandatory to provide the correct details of the bank account where you wish to receive your refund. If this information is missing or inaccurate, your return will be considered defective.

Make sure to double-check the following details:

Bank Account Number: Ensure that the account number you enter is correct and matches the one linked to your PAN.
IFSC Code: Double-check that the IFSC code of your bank branch is entered correctly.
Bank Account Type: Specify whether your account is a savings or current account.

Incorrect bank account details can cause delays in refund processing and lead to the issuance of a defective return notice.

Conclusion

A Defective Return Notice underSection 139(9) of the Income Tax Act is a common issue that many taxpayers encounter. However, with prompt attention and action, the errors can be corrected, and the filing process can be completed successfully. It’s essential to carefully review the notice, make the necessary corrections, and re-submit the return within the prescribed time limit. Failing to do so can result in penalties, delayed refunds, or additional scrutiny from the tax authorities. By staying on top of any issues, taxpayers can ensure that their returns are filed accurately and on time. For those seeking assistance in navigating this process smoothly, it is highly recommended to download theTaxBuddy mobile appfor a simplified, secure, and hassle-free experience.

FAQs

Q1: What happens if I ignore a defective return notice?

Ignoring a defective return notice can lead to several negative consequences, including penalties, delayed refund processing, and even rejection of your return. A defective return typically means there were errors or omissions in the filing, and if left unaddressed, it may hinder the progress of your tax proceedings. If the issues are not corrected within the required time frame, the Income Tax Department may proceed with further actions, which could include imposing additional fines or rejecting the return entirely. Therefore, it is essential to respond promptly to the notice and rectify the issues.

Q2: Can I fix a defective return by submitting the original ITR again?

No, simply resubmitting the original Income Tax Return (ITR) is not sufficient to correct a defective return. When you receive a defective return notice, you must file a revised return addressing the specific issues identified in the notice. The revised return should include the correct information or corrections, and it must be re-uploaded through the Income Tax Department's portal or via a tax filing platform likeTaxBuddy, which can assist you in making the necessary adjustments accurately.

Q3: How long do I have to respond to a defective return notice?

Typically, you have 15 days from the date of receiving the defective return notice to rectify the errors and submit the revised return. However, the exact time frame may vary depending on the nature of the issue and the specific notice issued by the Income Tax Department. If you are unable to respond within this period, the department may take further action, such as levying penalties or even disallowing the return. It’s important to keep track of the notice date and act promptly to avoid any penalties or issues with the processing of your return.

Q4: What types of errors are commonly highlighted in a defective return notice?

A defective return notice often points to a variety of errors, including:

Missing personal details, such as incorrect name, PAN, or address.
Discrepancies in TDS credits, where the TDS mentioned in the return does not match the TDS details filed by your employer or the bank.
Incorrect income figures, including mismatched reporting of income or the inclusion of income that doesn’t belong to the current year.
Omission of signatures on the return.
Mathematical errors or missing documentation, such as proofs of exemptions or deductions.

Correcting these errors promptly will ensure that your return is processed efficiently and that you avoid delays or penalties.

Q5: Will I receive a refund if my return is defective?

If your return is marked as defective, your refund will be delayed until the errors are rectified. Refund processing is typically halted for defective returns as the issues need to be resolved before the return is processed further. Once you fix the defects and resubmit the corrected return, the refund process will resume, and you may receive your refund. Therefore, it’s important to address the defective return notice swiftly to avoid unnecessary delays in refund processing.

Q6: Can I file a revised return if I miss the deadline for correcting a defective return?

Yes, if you miss the deadline for correcting a defective return, you can file a revised return underSection 139(5) of the Income Tax Act. A revised return allows you to correct any errors, including those identified in a defective return notice. However, it is always advisable to address a defective return notice as soon as possible to prevent additional penalties or the risk of the return being rejected. If you are uncertain about how to file a revised return, platforms like TaxBuddy can assist in ensuring the corrections are made accurately and in a timely manner.

Q7: Does a defective return affect my tax liabilities?

Yes, a defective return can affect your tax liabilities. If the errors in the return result in an underreporting of income or deductions, the tax department may recalculate your tax liabilities, leading to higher taxes owed. In some cases, the errors may also lead to the disallowance of certain deductions or exemptions, increasing the overall tax burden. It is crucial to fix the issues highlighted in the defective return notice to avoid these consequences and ensure that your tax liabilities are correctly calculated.

Q8: Can I file a defective return notice response through TaxBuddy?

Yes, TaxBuddy can assist in handling defective returns. If you receive a defective return notice, TaxBuddy offers expert guidance to ensure that you address the issues accurately and promptly. The platform helps you file a corrected return by making the necessary adjustments, verifying TDS credits, and ensuring that all information is accurate. By using TaxBuddy, you can ensure a hassle-free and error-free process when responding to a defective return notice.

Q9: Will a defective return result in an audit?

A defective return may result in additional scrutiny from the Income Tax Department, including the possibility of an audit. While not every defective return triggers an audit, significant discrepancies or errors, such as unreported income, incorrect deductions, or mismatched TDS, could raise red flags, leading to further investigation. To avoid an audit and expedite the processing of your return, it's crucial to address the defective notice swiftly and accurately.

Q10: What should I do if I’m unable to rectify a defective return on my own?

If you are unsure about how to fix a defective return, you can seek professional help. TaxBuddy offers expert assistance in addressing defective return notices. The platform can help you identify the issues in your return, make the necessary corrections, and ensure that your return is compliant with the tax laws. If you're not comfortable doing it yourself, consider consulting a tax professional who can guide you through the process and help you avoid further complications.

Q11: Can I make corrections in my ITR after filing?

Yes, you can make corrections in your ITR after filing by submitting a revised return. The revised return allows you to correct any mistakes made in the original filing, such as incorrect income reporting, missing deductions, or discrepancies in TDS credits. It is advisable to file a revised return before the end of the assessment year to ensure that your filing is accurate and compliant with the tax regulations.

Q12: Does TaxBuddy support all tax regimes for ITR filing?

Yes, TaxBuddy supports both the old and new tax regimes for ITR filing. Whether you prefer to take advantage of the deductions and exemptions under the old tax regime or opt for the simpler, tax-rebate-based new tax regime, TaxBuddy ensures that you can make the best choice based on your financial situation. The platform helps you assess both options and choose the one that minimizes your tax liability while ensuring full compliance with the tax laws.