Understanding section 139(9): What to do when your income tax return is marked defective

The nation’s Income Tax Department scrutinises every submitted return. Checks are done for completeness, clarity, and accuracy. When a tax return falls short of the required standards, it is highlighted and marked as a defective return. It becomes a defective return under Section 139(9) of the Income Tax Act, 1961.

This provision provides taxpayers with an opportunity to correct errors and mistakes while filing returns for FY 2024-25. It ensures that taxpayers are not directly subjected to penalties immediately in case they file a defective return.

Significance of prompt action on the defective return notice

Once defects and mistakes are identified, the department issues a notice to the taxpayer highlighting the errors. Post the same 15 days are provided to the taxpayer to rectify these errors. The assessing officer (AO) may allow further time upon request. Immediate and prompt action in such cases ensures that the taxpayer avoids the consequence of an invalid return, which is treated simply as a non-filing.

Furthermore, ignoring income tax notices or non-rectification can result in penalties, interest on unpaid taxes, loss of carry-forward benefits, and the possibility of legal action.

Steps to rectify defective returns

1. Log in to the Income Tax e-filing portal and carefully check the notice details.
2. Understand the exact mistakes in the notice. If in doubt, reach out to a tax professional.
3. File a revised return using the correct form with complete and accurate information.
4. Submit all necessary supporting documents and proof of tax payments.
5. Verify the corrected return through Aadhaar OTP, digital signature, or electronic verification code.

Why prompt correction matters?

Providing the tax authorities with a credible and prompt response within the prescribed time protects the taxpayer’s compliance status. It also protects the taxpayer against interest and penalties.

Late rectifications may also be accepted if made before the assessment completion date. Still, in their interest, taxpayers are advised to act in a swift manner to maintain hassle-free and seamless tax records.

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