39. Defective Return U/s 139(9)

Defective Return under Section 139(9) of the Income Tax Act, 1961 – Explained

Filing your income tax return (ITR) correctly is crucial to avoid unnecessary notices or penalties. A return is termed “Defective” under Section 139(9) of the Income Tax Act, 1961 when essential information or documents are missing, or when there’s a mismatch in data. This usually happens due to errors like not attaching profit and loss accounts, balance sheets for businesses, or failing to verify the return. When a return is found to be defective, the Income Tax Department sends a notice to the taxpayer via the e-filing portal, requesting rectification within a specified period—usually 15 days from the date of the notice.

According to Section 139(9) of the Income Tax Act, a return shall be deemed defective unless it is accompanied by all the necessary documents and compliance declarations. For example, Explanation (a) to Section 139(9) states that a return must include computation of total income, proof of tax paid, audited accounts (if applicable), and relevant financial statements. If the taxpayer fails to rectify the defect within the allowed period (or the extended time granted by the Assessing Officer), the return will be treated as invalid, and it will be assumed that the individual has not filed any return at all, inviting penalties under other sections.

To avoid receiving a defective return notice, taxpayers should carefully review their ITR before submission. Common issues include mismatch in Form 16 and income details, incorrect bank details, or missing audit reports for businesses. Timely rectification is essential, as failing to respond can lead to loss of refund eligibility and legal consequences. One can rectify the defect by logging into the income tax e-filing portal, selecting the notice under Section 139(9), and submitting the corrected return within the given time frame.

🧠 Mnemonic to Remember: “D-E-F-E-C-T”

• D – Documents missing (P&L, balance sheet, audit report)
• E – E-filing notice sent under Section 139(9)
• F – Fifteen days to respond
• E – Explanation (a) lists return essentials
• C – Consequences include invalid return status
• T – Timely rectification avoids penalties