Section 139(9) Defective Return Notice: Meaning, Causes & Resolution

Q: Can a defective return be corrected after the deadline?

If a taxpayer misses the 15-day window, the return is marked as invalid. However, the taxpayer can file a revised return under Section 139(5) or use the ITR-U option under Section 139(8A) within 48 months, though this includes additional tax implications.

Q: What are the common reasons for receiving a defective return notice?

Common reasons include unreported income, incorrect deductions, mismatch between TDS claimed and Form 26AS, missing bank details, filing the wrong ITR form, unverified returns, or missing audit reports. These can often be avoided with expert-assisted filing platforms like TaxBuddy.

Q: How can I correct a defective return under Section 139(9)?

Log in to the e-filing portal, locate the 139(9) notice under 'e-Proceedings' or 'Compliance', download defect details, make corrections in the ITR utility, and submit the corrected return under 'Response to Notice u/s 139(9)'. Verify using OTP or Net Banking. TaxBuddy helps identify and fix such defects quickly.

Q: What happens if a defective return is not rectified?

If not corrected, the return is treated as invalid. This can lead to penalties, loss of carry-forward benefits, denied refunds, and possible scrutiny. Timely correction prevents these issues.

Q: Is there any penalty for receiving a defective return notice?

There is no penalty for receiving the notice itself. However, if the return isn't corrected and is treated as invalid, penalties, interest, and late fees may apply depending on the situation.

Q: How is Section 139(9) different from ITR-U filing?

Section 139(9) deals with errors in an already filed return. ITR-U under Section 139(8A) allows voluntary corrections even after the assessment year ends. 139(9) has no extra tax, while ITR-U involves additional tax ranging from 25% to 70%.

Q: What is the ITR-U filing window for AY 2025–26?

For AY 2025–26 (FY 2024–25), the ITR-U window is open from April 1, 2026 to March 31, 2030. This 48-month window allows taxpayers to file or correct returns with additional tax depending on delay.

Q: Can TaxBuddy help in responding to Section 139(9) notices?

Yes, TaxBuddy offers expert support to resolve defective return notices. Their AI system detects errors early, and their professionals ensure timely, accurate correction and submission.

Nimisha Panda
Nov 3
9 min read

A defective return notice under Section 139(9) is issued by the Income Tax Department when an Income Tax Return (ITR) contains missing details, inconsistencies, or mismatched data that prevent proper assessment. This notice gives taxpayers a chance to rectify such defects within a specified time to avoid their return being treated as invalid. The recent Budget 2025 and CBDT updates have improved the e-filing process, making it simpler for taxpayers to identify and correct these issues through online verification and guided tools like TaxBuddy.

Understanding Section 139(9) Defective Return Notice

A defective return notice under Section 139(9) of the Income Tax Act is issued when the Income Tax Department identifies discrepancies, missing details, or incomplete information in a taxpayer’s filed return. Such defects may prevent the return from being processed accurately. The notice serves as an opportunity for the taxpayer to correct these errors and resubmit the return within the stipulated period—generally 15 days from receiving the notice. If the taxpayer fails to respond or rectify the defects in time, the return is treated as invalid, meaning it will be considered as if no return was filed. This can lead to penalties, interest on unpaid taxes, and delay in refund processing.

Common Causes for a Defective Return Notice

A defective return notice may arise from several reasons, ranging from missing mandatory details to data mismatches between filed returns and departmental records. Common causes include:

Failure to provide income details under the correct heads (such as salary, business, or capital gains).
Mismatch between TDS claimed in the ITR and the TDS reflected in Form 26AS or AIS/TIS.
Omission of bank account details or incorrect IFSC code.
Non-verification of the return within the required time after e-filing.
Errors in the computation of income or tax payable.
Uploading an incomplete or corrupted JSON file during filing.
Missing audit reports or required attachments for audited taxpayers. These errors are mostly clerical or procedural, and with the help of guided platforms like TaxBuddy, taxpayers can easily identify and correct them.

How to Respond to a Section 139(9) Notice

Responding to a defective return notice requires a timely and systematic approach. The steps include:

Log in to the Income Tax e-filing portal.
Navigate to the “e-Proceedings” or “Compliance” section and select the issued Section 139(9) notice.
Review the reason for defect as mentioned by the department.
Download the original return data and make the required corrections in the ITR utility.
Re-upload the corrected ITR within the 15-day window.
Verify the return again through Aadhaar OTP, EVC, or net banking. Once corrected, the Income Tax Department will reprocess the return. If all defects are rectified accurately, the return will be considered valid and processed normally. Filing with the assistance of TaxBuddy ensures that each step is error-free and completed within the due date.

Difference Between Section 139(9) and ITR-U

While both Section 139(9) and ITR-U deal with errors in income tax returns, they serve distinct purposes. A Section 139(9) notice is issued when a filed return is found defective—requiring correction within a specific period to remain valid. In contrast, ITR-U (Updated Income Tax Return) allows a taxpayer to voluntarily correct, update, or report omitted income even after the end of the assessment year.

Under the Finance Act 2025, taxpayers can file ITR-U for FY 2024–25 (AY 2025–26) between April 1, 2026, and March 31, 2030—a 48-month period from the end of the assessment year. Earlier, the window was limited to 24 months. Section 139(9) correction is free from additional tax, whereas ITR-U filings attract additional tax ranging from 25% to 70% on unpaid tax and interest, depending on how late the update is made.

Penalties and Consequences of Ignoring a Section 139(9) Notice

Ignoring a defective return notice can lead to serious consequences. If the taxpayer fails to rectify the defect within the specified time, the return is declared invalid under the law. This is treated as if no return was ever filed, which may result in:

Loss of eligibility for carrying forward losses or deductions.
Interest and penalties under Sections 234A, 234B, and 234C.
Delay or forfeiture of tax refunds.
Possible scrutiny or reassessment by the department.

Additionally, failure to file a valid return may attract a late filing fee under Section 234F—₹5,000 if total income exceeds ₹5 lakh and ₹1,000 otherwise. Prompt correction through the portal or by using professional platforms like TaxBuddy prevents such penalties and ensures compliance.

Role of TaxBuddy in Handling Defective Returns

TaxBuddy simplifies the process of identifying and rectifying defective returns through automated error detection and professional guidance. Its AI-based system scans uploaded returns for inconsistencies, mismatches, or missing details before submission, significantly reducing the chances of receiving a defective return notice. In case a notice is already received, TaxBuddy’s expert-assisted plans guide users step-by-step in understanding the reason for the defect, making necessary corrections, and ensuring timely resubmission. The platform also provides assistance in related areas like ITR-U filing, TDS reconciliation, and refund tracking, making it a comprehensive solution for all tax compliance needs.

Preventing a Defective Return Notice

Preventing a defective return starts with careful and accurate filing. Taxpayers should:

Verify Form 26AS, AIS, and TIS for accuracy before filing.
Cross-check income sources and claim deductions only with supporting documents.
Ensure correct selection of ITR form type based on income category.
Recheck bank details, PAN, and other identifiers before submission.
Always verify the return immediately after filing.
Use reliable and AI-powered platforms like TaxBuddy for automated checks and real-time error validation.

A proactive review of tax data reduces the likelihood of notices, ensuring smooth compliance and faster processing of refunds.

Conclusion

Rectifying a defective return under Section 139(9) is essential to keep the filing valid and avoid penalties or delays. The process, though simple, requires accuracy and timely action. With the extended filing windows, improved e-filing systems, and assistance from AI-driven tools, taxpayers can now resolve issues more efficiently. 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. What does a Section 139(9) defective return notice mean?

A Section 139(9) defective return notice is issued when the Income Tax Department identifies errors or omissions in the return filed by a taxpayer. These errors may include missing details, incomplete information, mismatched income figures, or technical mistakes that prevent the return from being processed. The notice is not a penalty but an opportunity to correct the return within a given timeframe. If the taxpayer resolves the issues mentioned in the notice and resubmits the return within the deadline, it is treated as valid and processed normally.

Q2. How much time is given to respond to a defective return notice?

The taxpayer is generally given 15 days from the date of receiving the notice to rectify the defects and file a corrected return. However, in some cases, the Assessing Officer may extend this period based on the taxpayer’s request or special circumstances. Timely correction is crucial because failure to respond within the allowed period results in the return being treated as invalid. Filing the corrected return through the Income Tax portal ensures that the issue is closed, and the return proceeds for regular processing and assessment.

Q3. Can a defective return be corrected after the deadline?

If a taxpayer misses the 15-day correction window, the return is automatically marked as invalid under Section 139(9). Once it becomes invalid, it is treated as if no return was filed at all. However, the taxpayer can later file a revised return under Section 139(5) or, if the assessment year has ended, use the ITR-U (Updated Return) facility to correct and submit the return. ITR-U allows filing corrections within 48 months from the end of the assessment year but comes with additional tax implications. Using expert assistance through platforms like TaxBuddy helps avoid such delays and ensures timely compliance.

Q4. What are the common reasons for receiving a defective return notice?

The Income Tax Department issues a defective return notice for various reasons, such as:

Not reporting income from all sources (like salary, capital gains, or business).
Claiming deductions without providing valid proofs or under incorrect sections.
Mismatch between the TDS claimed in the ITR and Form 26AS or AIS data.
Missing bank account details or incorrect IFSC codes.
Filing an incorrect ITR form type.
Not verifying the return after submission.
Missing audit reports for cases where audit is mandatory. These issues often occur due to oversight or errors while filing manually, which can be prevented by using guided filing solutions such as TaxBuddy.

Q5. How can I correct a defective return under Section 139(9)?

To correct a defective return, the taxpayer must log in to the Income Tax e-filing portal and follow these steps:

Go to “e-Proceedings” or “Compliance” and locate the Section 139(9) notice.
Download the details of the defect mentioned by the department.
Open the ITR utility, make the necessary corrections, and validate the file.
Upload the corrected return and submit it under the “Response to Notice u/s 139(9)” category.
Verify the return using Aadhaar OTP, EVC, or Net Banking. Once resubmitted and accepted, the return regains valid status. Platforms like TaxBuddy simplify this process by automatically identifying defects and assisting in prompt corrections.

Q6. What happens if a defective return is not rectified?

If a defective return is not corrected within the given time, it becomes invalid under the law. This means it is treated as if no return was filed, leading to:

Penalties for non-filing of ITR.
Interest under Sections 234A, 234B, and 234C.
Loss of carry-forward benefits of business losses or deductions.
Delayed or denied refunds. In some cases, persistent non-compliance can attract scrutiny or notices under Sections 142(1) or 147. To prevent such complications, taxpayers should act promptly upon receiving a defective return notice and seek professional help if needed.

Q7. Is there any penalty for receiving a defective return notice?

There is no direct penalty for simply receiving a defective return notice. It is considered a corrective communication from the department rather than a punitive one. However, penalties and interest can arise if the taxpayer fails to correct the return and it is treated as invalid. Additionally, late fees under Section 234F may apply if the corrected return is submitted beyond the filing deadline. Hence, it’s essential to review and address the notice immediately to avoid secondary consequences.

Q8. How is Section 139(9) different from ITR-U filing?

Section 139(9) and ITR-U serve different purposes. Section 139(9) deals with defects or errors in an already filed return — for example, missing income details or incorrect TDS claims. ITR-U, introduced under Section 139(8A), allows taxpayers to voluntarily update or correct their returns even after the assessment year is over, such as when income was underreported or not declared earlier. The Budget 2025 extended the ITR-U filing window to 48 months from the end of the assessment year, offering more time for corrections. While Section 139(9) involves no additional tax, ITR-U requires payment of additional tax ranging from 25% to 70% depending on when it is filed.

Q9. What is the ITR-U filing window for AY 2025–26?

For Assessment Year 2025–26 (FY 2024–25), taxpayers can file their original return by September 15, 2025. If missed, they can file a belated return until December 31, 2025. The ITR-U filing window begins April 1, 2026, and remains open until March 31, 2030 — a 48-month period under the new provisions of the Finance Act 2025. This extension provides additional flexibility to correct or update previously filed or missed returns, but the additional tax increases with time. Filing within the earliest possible window minimizes penalties and interest.

Q10. Can TaxBuddy help in responding to Section 139(9) notices?

Yes, TaxBuddy provides dedicated support for handling defective return notices under Section 139(9). The platform’s experts help taxpayers identify the cause of the defect, prepare corrected ITRs, and submit them through the official portal within the prescribed time limit. TaxBuddy also offers AI-based filing checks that automatically detect errors or mismatches before submission, preventing future notices. For complex cases involving multiple years or additional assessments, TaxBuddy’s expert-assisted plans ensure proper documentation, verification, and compliance with all legal requirements.

Q11. 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 options. The self-filing plan is ideal for individuals familiar with the filing process and looking for guided automation. In contrast, the expert-assisted plan provides complete end-to-end service, where a qualified professional prepares, reviews, and files the return on the taxpayer’s behalf. This flexibility allows users to choose according to their comfort and complexity of income. Both options are backed by advanced AI validation, ensuring accuracy and compliance with the latest tax rules.

Q12. Which is the best site to file ITR?

The best site to file an income tax return is one that ensures accuracy, security, and ease of use. Platforms like TaxBuddy stand out due to their AI-driven filing interface, expert-assisted options, and seamless integration with the Income Tax Department’s system. TaxBuddy simplifies the process of uploading Form 16, verifying TDS details, and claiming deductions, while also helping users manage notices such as those under Section 139(9). The platform’s mobile app makes tax filing convenient, accurate, and accessible to salaried individuals, professionals, and business owners alike.