Common Reasons Why Returns Are Declared Defective Under Section 139(9)
- Rashmita Choudhary
- Nov 4
- 9 min read
Updated: 5 days ago
When an Income Tax Return (ITR) is filed with incomplete information, incorrect details, or without fulfilling mandatory requirements, it can be flagged as defective under Section 139(9) of the Income Tax Act, 1961. The notice is issued by the Assessing Officer (AO) to allow the taxpayer to rectify these errors within a specified period. Common reasons include wrong ITR form selection, missing schedules, mismatched income and TDS data, or non-submission of audit reports. Understanding these reasons helps ensure smoother compliance and prevents unnecessary notices during assessment.
A return is declared defective under Section 139(9) when it fails to meet prescribed conditions such as complete disclosure of income, correct form usage, or full tax payment, thereby preventing the AO from properly verifying the return.
Table of Contents
Understanding Section 139(9) of the Income Tax Act
Section 139(9) of the Income Tax Act, 1961, empowers the Assessing Officer (AO) to declare a tax return as defective if it contains errors, omissions, or incomplete information that prevents proper verification. When a return is identified as defective, the taxpayer receives a notice to correct and resubmit it within a specific time frame—typically 15 days. If the taxpayer fails to rectify the issues within this period, the return is treated as invalid, as though it was never filed. This provision ensures that only complete and accurate returns are processed, maintaining the integrity of the tax system and ensuring fair assessment.
Common Reasons Why Returns Are Declared Defective Under Section 139(9)
Defective returns are usually the result of incomplete disclosures, incorrect form selection, or mismatched information between income and tax paid. The Income Tax Department’s automated systems cross-verify data from multiple sources like Form 26AS, AIS, and TIS. Any inconsistency or missing element can trigger a defective return notice. Understanding these reasons helps taxpayers file correctly and avoid unnecessary delays or notices from the department.
Incomplete ITR or Missing Details
One of the most frequent causes of defectiveness is filing an ITR without filling all required sections or schedules. Missing income sources, unreported interest income, or skipped details under schedules such as Salary, Capital Gains, or Other Sources often lead to discrepancies. Additionally, forgetting to mention exempt income or non-disclosure of foreign assets can make the return incomplete. A complete and properly filled return ensures smooth processing and timely refunds.
Mismatch in Income and Tax Paid
If the tax paid through TDS, TCS, advance tax, or self-assessment tax does not align with the income reported, the return may be flagged as defective. For example, claiming a TDS credit without reporting the corresponding income, or vice versa, often results in discrepancies. The Assessing Officer relies on accurate reconciliation between the reported income and the tax payments reflected in Form 26AS and AIS. TaxBuddy helps taxpayers pre-validate these details to avoid such mismatches before submission.
Using the Wrong ITR Form
Filing an ITR form that doesn’t correspond to one’s income type or taxpayer category is another common reason for returns being deemed defective. For instance, filing ITR-1 (Sahaj) when having capital gains or business income, or using ITR-4 instead of ITR-3 for professional income, can trigger a notice. Each ITR form serves a specific category of taxpayers, and choosing the wrong one leads to incomplete data capture by the department’s system. Correct form selection ensures all income heads are properly disclosed and processed.
Non-submission of Audit Reports or Financial Statements
Taxpayers whose businesses are subject to a tax audit under Section 44AB must attach audit reports, along with financial statements such as the balance sheet and profit and loss account, while filing their return. Failure to attach these mandatory documents results in the return being flagged as defective. For businesses under audit, submitting these documents is a legal requirement to validate income computation and maintain compliance with statutory audit norms.
Missing Proofs for Deductions and Claims
When deductions are claimed under various sections like 80C, 80D, or 80G without uploading the required proof or documentation, the return is considered incomplete. The Income Tax Department verifies these claims during processing, and missing evidence leads to defect notices. Ensuring that all deduction claims are supported by valid documents or receipts reduces the risk of discrepancies and delays.
Partial Tax Payment or Non-payment of Liability
If the taxpayer files a return without paying the full tax liability computed, the return automatically becomes defective. Even minor shortfalls, such as missing advance tax entries or unpaid self-assessment tax, are flagged. Before submitting the return, taxpayers must verify that the total tax payable is fully discharged and reflected correctly in the return. Acknowledging all payment challans ensures accurate processing and prevents unnecessary notices.
PAN, Name, or Bank Account Mismatch Issues
Discrepancies in PAN, name, or bank account details are also common triggers for defect notices. The information on the ITR must exactly match the details linked to the taxpayer’s PAN record. Similarly, providing incorrect or inactive bank account details can delay refund processing or even cause rejection of the return. Pre-validating bank accounts through the e-filing portal and ensuring the correct IFSC code are essential steps to prevent these issues.
Errors in Presumptive Taxation under Section 44AD
For taxpayers opting for presumptive taxation under Sections 44AD, 44ADA, or 44AE, errors in reporting gross receipts or showing presumptive income below the prescribed rate can make the return defective. The law mandates declaring a minimum percentage of turnover as income under these provisions. Failing to meet these thresholds or omitting required disclosures can attract notices under Section 139(9). Ensuring accuracy in turnover reporting and income computation helps maintain compliance.
How to Correct a Defective Return Under Section 139(9)
When a defective return notice is received, the taxpayer must log in to the Income Tax e-filing portal, review the specific errors mentioned, correct them, and resubmit the revised return. The portal provides an option to respond directly under the “e-Proceedings” section. It’s important to use the same acknowledgement number and assessment year while refilling. The corrected return should be filed within 15 days from the date of the notice, unless an extension is granted. Timely correction ensures that the return remains valid and is processed without further complications.
Timeline to Respond to a Defective Return Notice
The Assessing Officer usually allows 15 days from the date of the notice to correct the defective return. If the taxpayer needs more time, a written request for an extension can be made before the expiry of the initial deadline. Failing to respond within the stipulated time results in the return being treated as invalid, which can affect refund claims and compliance status. Timely attention to defect notices is crucial for uninterrupted tax processing.
How TaxBuddy Simplifies the Process of Fixing Defective Returns
TaxBuddy offers AI-driven tools that automatically detect potential issues before filing the return, helping users avoid defect notices altogether. The platform reviews all income heads, deductions, and tax payment details to ensure accuracy. In case a defective notice is received, TaxBuddy’s expert-assisted filing service guides users through the correction process step-by-step, ensuring the revised return is error-free and submitted on time. The TaxBuddy mobile app further simplifies this experience by allowing users to review, edit, and track their defect resolution directly from their phones.
Conclusion
Section 139(9) gives taxpayers a fair chance to correct mistakes in their returns without facing penalties, as long as the errors are rectified within the specified timeline. Understanding common causes of defective returns helps ensure smooth filing and accurate compliance. For anyone looking for assistance in tax filing, it is highly recommended to download the TaxBuddy mobile app 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 provides flexibility to suit every taxpayer’s comfort level. It offers both self-filing and expert-assisted plans. In the self-filing option, the platform guides users step-by-step through an intuitive interface where AI checks for data consistency and possible errors before submission. For those who prefer professional assistance, the expert-assisted plan assigns a dedicated tax professional to handle every aspect — from data validation to submission and notice handling. This dual-option system ensures that beginners and experienced filers alike can file confidently and accurately.
Q2. Which is the best site to file ITR?
While the official Income Tax e-filing portal is the government’s platform, many users prefer AI-assisted tools that simplify the process. TaxBuddy stands out as one of the best ITR filing platforms in India because it combines automation with human expertise. It offers automatic error detection, real-time TDS reconciliation, pre-filled form verification, and compliance tracking. Its mobile app also enables seamless filing, document uploads, and refund tracking — all within minutes.
Q3. Where to file an income tax return?
An income tax return can be filed either through the Income Tax Department’s official e-filing portal (www.incometax.gov.in) or through authorized intermediaries like TaxBuddy. TaxBuddy’s platform simplifies the process with built-in checks for income disclosure, deduction verification, and tax computation accuracy. The app version allows users to upload their Form 16 or income details and get an instant tax calculation before filing. For taxpayers who find the portal complex, TaxBuddy acts as a reliable and user-friendly alternative.
Q4. What is a defective return under Section 139(9)?
A defective return under Section 139(9) is an ITR that contains errors or omissions making it incomplete or unverifiable by the Assessing Officer (AO). Common reasons include missing income details, unverified deductions, incorrect form selection, or mismatch between reported tax and the data in Form 26AS or AIS. Once flagged, the taxpayer receives a notice from the AO to correct and refile the return within a stipulated timeframe. The purpose of this provision is to allow taxpayers to rectify mistakes rather than face penalties.
Q5. How much time is given to correct a defective return?
The Income Tax Department generally provides 15 days from the date of issue of the notice under Section 139(9) to correct the return. However, in cases where additional time is required, the taxpayer can request an extension by submitting a written application before the expiry of the initial deadline. Failing to respond within the given period may result in the return being treated as invalid. Timely correction ensures that the return is processed smoothly and refunds, if applicable, are not delayed.
Q6. Can a defective return be refiled after correction?
Yes, once the taxpayer identifies and rectifies the errors mentioned in the notice, the corrected return can be refiled through the e-filing portal. The response must be submitted under the “e-Proceedings” or “e-File in response to notice u/s 139(9)” section. The same acknowledgment number and assessment year should be used to maintain continuity. After submission, the revised return goes through verification and, once accepted, it replaces the defective one in the system.
Q7. What happens if a defective return is not corrected within the time limit?
If a taxpayer fails to correct and resubmit the return within the specified period, the return is treated as invalid under the Income Tax Act. This means it is considered as if no return was filed for that year. As a result, the taxpayer may lose certain benefits, such as carrying forward losses or claiming refunds. It may also attract scrutiny or notices for non-filing. Prompt action upon receiving a defective notice is therefore crucial to avoid unnecessary complications.
Q8. Can a defective return affect refund processing?
Yes, a defective return can delay or block refund processing. The Income Tax Department does not process refunds for returns marked as defective until the taxpayer corrects the issues and resubmits the return. Once the revised return is verified and accepted by the department, the refund amount (if any) is credited to the taxpayer’s pre-validated bank account. Using TaxBuddy’s automated checks helps prevent such refund delays by ensuring accuracy before filing.
Q9. What are the most common reasons for defective returns?
The most common reasons include missing income details, mismatched TDS or advance tax data, using the wrong ITR form, or failing to upload mandatory documents such as audit reports or deduction proofs. Other frequent causes are incorrect bank account information or failure to pay the full tax liability before filing. Many of these issues can be prevented through a pre-filing review using AI-based tools like TaxBuddy, which automatically validates all entries against Form 26AS and AIS data.
Q10. Can I receive multiple defective notices for the same assessment year?
Yes, it is possible to receive more than one defective notice for the same assessment year. If a taxpayer responds to the first notice but still fails to address all discrepancies, the department may issue another notice highlighting remaining or new defects. Each notice must be treated seriously and responded to within the specified time limit. Continuous errors can raise red flags during scrutiny, making it essential to use expert-reviewed filing services such as those offered by TaxBuddy.
Q11. Does a defective return impact future assessments?
An unrectified defective return can affect the taxpayer’s future compliance record. It may lead to disqualification from claiming carried-forward losses, delays in refund claims, or increased scrutiny in subsequent years. The system keeps track of past compliance behavior, and consistent filing errors may trigger manual assessment. Rectifying defects on time and maintaining accurate records not only ensures smooth processing for the current year but also builds a clean compliance history for future filings.
Q12. How does TaxBuddy ensure error-free filing?
TaxBuddy’s AI-driven platform runs multiple layers of verification before submitting any return. It automatically reconciles income data from Form 16, 26AS, AIS, and bank statements to ensure consistency. The system flags mismatches, missing schedules, or incomplete disclosures instantly. For users who prefer professional guidance, TaxBuddy’s expert-assisted plan assigns a qualified tax expert to review the entire return before filing. This dual approach of automation and human review ensures error-free, compliant, and timely ITR filing every year.
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