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For Assessment Year 2026-27, taxpayers who have filed their income tax returns should keep a close watch on their registered email and the e-filing portal. If the Income Tax Department finds that the information in the return is incomplete, inconsistent, or incorrect, it may issue a notice for a 'defective return' under Section 139(9).

An income tax return may be deemed defective if the information provided is incomplete or inconsistent, or if it fails to meet the requirements of the tax return form. For instance, a taxpayer might claim TDS credit without disclosing the corresponding income in the return. Similarly, certain details required for reporting business income might be missing.

How will you know if your ITR is defective?
Via an email sent to the taxpayer's registered email address
Through a notification sent by post
Via a notice visible after logging into the e-filing portal
A notice issued under Section 139(9) typically specifies the defect that needs rectification and outlines the steps the taxpayer must take.

How much time is allowed to respond?
Taxpayers are allowed 15 days from the date of receiving the notice to rectify the defect or submit a response. However, if the notice specifies a different timeframe, that must be adhered to. If more time is required, the taxpayer can request an extension or an adjournment in accordance with the prescribed procedure.

What are the common reasons for receiving a defective ITR notice?
Claiming TDS credit without disclosing the corresponding income: The taxpayer claims TDS credit but fails to include the related receipt or income in the return. Discrepancy in total receipts: Receipts related to TDS in Form 26AS exceed the total receipts reported under the respective income head.

Tax liability despite zero income: The return shows zero income under the relevant head and zero total income, yet tax liability has been calculated and paid.
Mismatch in PAN name: The taxpayer's name in the ITR does not match the name registered with the PAN.
Incomplete business details: A taxpayer reporting income from business or profession fails to provide the necessary details regarding the balance sheet and profit & loss account.

Can you rectify the defect online?
Yes. The taxpayer can submit a response after making the necessary corrections to the ITR. Taxpayers should carefully read the reason mentioned in the notice and provide the required information rather than making unnecessary changes to the return.

What happens if you do not respond?
Ignoring a notice regarding a defective return can have serious consequences. If the defect is not rectified within the stipulated time, the return may be treated as invalid.

Interest or penalties may be levied.
Benefits of carrying forward certain losses may be lost.
Benefits of specific exemptions or deductions may be lost.
The return may be deemed as not filed for the relevant assessment year.

Can you file a different return instead?
In some cases, if the filing deadline is still open, the taxpayer can file a fresh or revised return. Alternatively, the taxpayer can respond to the defective return notice. Once the deadline for filing a fresh or revised return has passed, the taxpayer generally has to rectify the defect by responding under Section 139(9). If the taxpayer fails to rectify the issue, the return may ultimately be treated as invalid.

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