Defective return under Section 139(9) is a problem faced by many taxpayers. Receiving a notice stating that your income-tax return is defective under section 139(9) often causes unnecessary anxiety. Many taxpayers assume it is a serious default or that penalties will follow immediately. In reality, a defective return notice is procedural, not punitive, and in most cases, it can be corrected easily if handled correctly and within time.
This article explains what a defective return means, common reasons for defect, the time limits involved, and a clear step-by-step method to fix the defect without panic.
What Is a Defective Return under Section 139(9)?
A return of income is treated as defective when it does not comply with certain basic requirements prescribed under the Income-tax Act or the rules made thereunder. Section 139(9) empowers the Assessing Officer or the CPC to intimate the taxpayer of such defects and provide an opportunity to correct them.
Importantly, a defective return is not the same as an invalid or incorrect return. It simply means that some information is missing, inconsistent, or incorrectly reported.
Time Limit to Rectify a Defective Return
Once a notice under section 139(9) is issued:
- The taxpayer is usually given 15 days to remove the defect
- The time can be extended on request, if reasonable cause is shown
- If the defect is not rectified within the allowed time, the return may be treated as invalid, as if no return was filed at all
This makes timely action critical.
Common Reasons Why Returns Are Marked Defective
Understanding the reason mentioned in the notice is the most important step.
1. Mismatch between Income and TDS Details
One of the most common defects arises when:
- TDS is claimed, but corresponding income is not offered to tax
- TDS schedules are filled, but income schedules are blank or inconsistent
2. Missing Balance Sheet or Profit & Loss Account
Taxpayers required to maintain books of account—such as:
- Business owners
- Professionals
- Persons opting out of presumptive taxation
must upload Balance Sheet and P&L details. Failure to do so triggers a defect.
3. Incorrect ITR Form Used
Filing the wrong ITR form, for example:
- Using ITR-1 when business income exists
- Using ITR-4 despite ineligibility
can result in the return being marked defective.
4. Tax Payable but Not Paid
If the return shows tax payable but:
- Self-assessment tax is not paid, or
- Challan details are missing
the return may be treated as defective.
5. Incomplete Mandatory Fields
Leaving mandatory fields blank—such as:
- Nature of business
- Audit details
- Partner or proprietor information
can also lead to a defect notice.
Step-by-Step: How to Fix a Defective Return under Section 139(9)
Step 1: Read the Notice Carefully
Log in to the income-tax portal and:
- Download the notice
- Identify the exact defect code and description
Each defect corresponds to a specific corrective action.
Step 2: Understand What Needs Correction
Do not rush to resubmit blindly. First determine:
- Whether additional information is required, or
- Whether a revised computation or payment is necessary
In many cases, the original return data must be re-entered correctly, not just supplemented.
Step 3: Prepare the Corrected Return Offline
Use the appropriate ITR utility to:
- Correct the defect
- Ensure consistency across all schedules
- Recheck tax computation and challans
This corrected return is not a revised return, but a response to the defect notice.
Step 4: Upload the Response to the Defective Notice
On the portal:
- Navigate to “e-Proceedings” or “Pending Actions”
- Select “Response to Defective Return”
- Upload the corrected XML/JSON file
- Submit the response
Always ensure successful acknowledgment.
Step 5: Verify the Response
If e-verification is required:
- Complete Aadhaar OTP / EVC verification promptly
Unverified responses may be treated as incomplete.
What Happens After Rectification?
Once the defect is removed:
- The return is treated as valid
- Normal processing under section 143(1) follows
- No adverse inference is drawn merely because a defect existed earlier
In most cases, the matter ends there.
Consequences if the Defect Is Not Rectified in Time
If no response is filed:
- The return may be treated as invalid
- Consequences may include:
- Loss of carry-forward of losses
- Late filing fee
- Exposure to best judgment assessment
However, even at this stage, remedial options may still exist, depending on facts.
Remedies When the Defect Does Not Get Removed
In some cases, despite filing a response to the notice under section 139(9), the defect may not get removed, or the return may still be treated as invalid due to technical reasons, portal issues, or an erroneous view taken by CPC. In such situations, the taxpayer is not without remedy.
The first recourse is to file an application for rectification under section 154, pointing out the mistake apparent on record—such as incorrect non-consideration of the response filed, system mismatch, or computational error—and enclosing supporting evidence. Rectification is particularly effective where the defect was in fact cured within time but not reflected due to processing errors.
If rectification is rejected or not acted upon, the taxpayer has the statutory right to file an appeal against the intimation treating the return as defective or invalid, or against the order rejecting rectification.
Appellate authorities have consistently held that genuine compliance should not be defeated by technical or procedural lapses, and where the defect was duly rectified or was not legally sustainable, the return must be treated as valid.
Thus, even where initial efforts fail, procedural remedies remain available to protect the taxpayer’s rights.
Key Points to Remember
- A defective return notice is curable
- Panic leads to wrong filings and bigger problems
- Always respond within time or seek extension
- Fix the defect precisely—do not over-correct
- Preserve acknowledgments and working papers
Conclusion
A defective return under section 139(9) is a procedural checkpoint, not an accusation. The law itself provides an opportunity to correct mistakes, recognising that tax compliance is complex and errors can occur.
Handled calmly and methodically, most defective return notices can be resolved without penalty, litigation, or long-term consequences. The key is to understand the defect, correct it accurately, and act within the prescribed timeline.
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