Section 139(9) of the Income
Tax Act provides critical guidance on why income tax returns may be marked as defective, a situation taxpayers should avoid during the filing season for FY 2024-25. The provision outlines specific parameters that determine when a return is considered incomplete or improper, requiring correction before tax authorities can process it.
The section serves as a regulatory framework that helps maintain filing standards while allowing taxpayers to rectify mistakes rather than facing immediate penalties. Understanding these provisions is essential for individuals and businesses alike as they prepare their financial documentation.
Common Mistakes Leading to Defective Returns
Tax returns are frequently marked defective due to several recurring errors that taxpayers make. These include incomplete personal information, mathematical miscalculations, discrepancies between tax deducted at source (TDS) claims and actual TDS certificates, and failure to report all income sources.
Other common issues include:
- Missing signatures or verification
- Incorrect bank account details
- Failure to attach required schedules or forms
- Inconsistencies between different sections of the return
When such errors are identified, the tax department issues a
defective return notice to the taxpayer, initiating the correction process. This notice specifically identifies the defects that need to be addressed before the return can be considered valid.
Correction Timelines and Compliance Requirements
Section 139(9) stipulates specific timeframes within which taxpayers must correct defective returns. Upon receiving a defective return notice, taxpayers typically have 15 days to submit corrections. However, the assessing officer has the discretion to extend this period upon receiving a reasonable request from the taxpayer.
If corrections are not submitted within the specified timeframe, the tax department may consider the
return as “non-est” or never filed. This can lead to serious consequences, including penalties for late filing or non-filing, loss of carry-forward benefits for certain losses, and potential scrutiny from tax authorities.
The correction timeline is not merely a procedural formality but a critical compliance requirement,”
tax experts emphasize. Failure to adhere to these timelines can result in the return being treated as invalid, effectively meaning the taxpayer has not fulfilled their filing obligation for that assessment year.
Rectification Process and Best Practices
The rectification process for defective returns involves several steps. First, taxpayers must carefully review the defective return notice to understand the specific issues identified. Next, they need to make the necessary corrections through the income tax portal or by submitting revised documentation as required.
Tax professionals recommend maintaining comprehensive records of all income, deductions, and tax payments throughout the year to minimize errors during filing. Additionally, using the tax department’s pre-filled forms can help reduce discrepancies in reported income and tax credits.
For complex returns, seeking professional assistance may be advisable to ensure compliance with all requirements under Section 139(9). This is particularly important for taxpayers with multiple income sources, capital gains, or foreign income.
The
Income Tax Department has also implemented digital verification methods to streamline the filing process and reduce errors. Taxpayers can now verify their returns electronically through Aadhaar OTP, net banking, or other digital means, which helps prevent defective returns due to verification issues.
As the filing season for FY 2024-25 approaches, taxpayers should familiarize themselves with these provisions to ensure
smooth processing of their returns and avoid unnecessary complications with tax authorities. Early filing also provides additional time to address any defects that might be identified before the final deadline.
