What is Defective Return and How to Rectify the Defects in Defective Return

1.  Introduction to Defective Returns

A defective return is an income tax return (ITR) which has already been filed but it contains various errors or mistakes, making it non-compliant in relation to requirements stipulated under the Income Tax Act.

These errors may arise due to various reasons, such as wrong information, missing data entry, or non-compliance in relation to specific tax filing guidelines as issued by Income Tax Department.

2.  Common Reasons behind Defective Returns

There are various reasons due to which an ITR may be considered as defective. The most common reasons are as under:

a.  Incomplete Filing such as Non-filing of key schedules or sections or claiming excess

b.  Filing of Incorrect Information such as:

c.  Unpaid Tax Liability

d.  Inconsistencies in Financial Data

e.  Technical Errors

3.  Defective Tax Returns: Section 139(9) of the Income Tax Act

Section 139(9) of the Income Tax Act, 1961, provides the provisions related to defective Income Tax returns.

Under the purview of this section, if the tax department (Centralised Processing Centre) or Assessing Officer finds that a return of income is defective, they will notify the taxpayer by issuing notice, and providing them an opportunity to rectify the defects within 15 days from the date of the notice.

If the defects are not rectified within the due time, the return will be treated as an invalid return, implying that it was never filed. Accordingly, the taxpayer may face penalties and interest for late filing or non-filing of the return.

4.  Process of Receiving Defective Return Notice

A taxpayer is notified through a formal notice if defect in any income tax returns filing in Delhi are identified. This notice can be received through email, SMS, or on the income tax portal. The notice typically includes:

5.  Procedure to Correct a Defective Return

The process of rectifying a defective return includes the following steps:

6.  Consequences of a Defective Return

In case of Failure to rectify a defective return within the specified time can result in following consequences:

Taxcellent helps you to file Income Tax Return (“ITR”) and also help you to rectify defects identified in ITR. We also deal with Income Tax Notices issued by Income Tax Department.

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