Receiving a Defective Return Notice under Section 139(9) of the Income Tax Act can be stressful for taxpayers. However, in most cases, the issue can be resolved easily if the notice is handled within the prescribed timeline.
The Income Tax Department issues a defective return notice when the Income Tax Return (ITR) filed by a taxpayer contains incomplete, inconsistent, or incorrect information. If the defects are not corrected on time, the return may be treated as invalid, as if no return was filed at all.
In this article, we will understand the meaning of a defective return notice, common reasons for receiving such notices, and the step-by-step process to fix them.
A notice under Section 139(9) is issued when the Income Tax Department finds defects or errors in the filed ITR. The taxpayer is required to rectify the defects within the specified time mentioned in the notice, generally 15 days from the date of receiving the notice.
The notice is usually sent through:
One of the most common reasons is mismatch between:
Reconcile all income and TDS details with Form 26AS and AIS before filing the revised response.
Selecting an incorrect ITR form can lead to defective return notices.
Example:
File the corrected return using the appropriate ITR form.
Taxpayers sometimes fail to disclose all active bank accounts held during the financial year.
Update complete bank account details while responding to the notice.
Businesses opting for presumptive taxation under Sections 44AD, 44ADA, or 44AE often incorrectly report turnover or profit details.
Ensure turnover, gross receipts, and presumptive income percentages are correctly disclosed.
Taxpayers having business or professional income may forget to fill:
Provide complete financial statements in the return.
Sometimes taxpayers pay self-assessment tax but fail to mention challan details in the ITR.
Add correct challan details including:
Where tax audit is applicable, failure to provide audit details may trigger a defective return notice.
Update:
Incorrect deductions under Sections 80C, 80D, 80G, etc., without proper supporting details can result in notices.
Revise the deduction claims as per actual eligible amounts.
Businesses registered under GST often receive notices when turnover reported in GST returns differs from turnover shown in ITR.
Reconcile:
Losses such as business loss or capital loss may not be properly disclosed or supported.
Correctly report losses and ensure timely filing eligibility conditions are satisfied.
Follow these steps to respond to the notice:
Visit the Income Tax e-filing portal and login using your PAN credentials.
Navigate to:
Pending Actions → e-Proceedings
Open the defective return notice and carefully read the error description.
Rectify the defects mentioned in the notice.
Upload the corrected return JSON/XML file and submit the response online.
Complete the verification process through:
Generally, the taxpayer gets 15 days from the date of notice to rectify the defects. However, an extension may be requested in certain cases.
If no response is submitted within the prescribed time:
In simple words, it will be treated as if no ITR was filed.
A Defective Return Notice under Section 139(9) is not a penalty notice, but it should never be ignored. Most notices arise due to minor reporting mistakes, incorrect ITR selection, or mismatch in data.
By carefully reviewing the notice and submitting a corrected response within the due date, taxpayers can avoid penalties, invalid returns, and future litigation.