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Taxpayers across the country are increasingly filing incorrect and incomplete ITR forms, this has resulted in triggering ‘defective return’ notices under Section 139(9) of the Income Tax Act over recent years. Such mistakes impact numerous taxpayers while submitting their tax returns due to evolving ITR formats and stricter data validation.
Risk of invalidation and delayed refunds
Submission of ITR 1 when one has capital gains from equities, foreign assets or professional income clearly results in the return becoming invalid. In such cases the department generally issues a 15 day notice to improve and rectify the submission. If remedial steps are not taken upon receiving of the notice then the entire return might be treated as not filed at all, leading to penalties and refund holds.
In all such cases of wrong returns taxpayers can follow five simple steps to fix such conditions:
Step‑1: Lodge a revised return
In case a problem arises before processing, then a taxpayer can submit a revised return under Section 139(5) using the correct form. The entire process incorporates logging into the e-filing portal, selecting the ‘Revised Return’ option, entering the original ITR details and rectifying the error by opting for the appropriate form.
Step‑2: E‑verify promptly
Now once the revised return is filed it has to be again e-verified through Aadhaar OTP, net banking or digital signature. Any delay or failure in doing so within 30 days may result in rendering the entire return as invalid.
Step‑3: Use rectification if processed
In case the original return has already been processed, minor rectifications and errors can still be corrected through a rectification request under Section 154 through the ‘Rectification’ tab on the portal. If in doubt it is always better to discuss your case on an individual basis with a certified tax professional.
Step‑4: Meet deadlines
Rectified and revised returns must be submitted before the assessment year ends (generally March 31, 2026 for FY 2024-25) or before the original return is processed, whichever is earlier. This is important because meeting deadlines is critical to help in facilitating seamless tax submission.
Step‑5: Respond to notices
If you fail to act on a defective notice within 15 days of communication, such inaction can render the return invalid. That is why upon receiving a notice, your first priority is to promptly respond to the notice and acknowledge the fact that you have received the intimation. You can also request for an extension through the portal if needed.
Hence, filing the wrong form is a situation that should never be permitted to escalate into trouble. Acting swiftly with a revised return, timely e‑verification, and rectification where possible helps reclaim refunds and avoid notices. Furthermore, for complex cases, such as changing income type or late filing, expert assistance is advised.
Disclaimer:This article is for informational purposes only and does not constitute legal or tax advice. Readers are advised to consult a qualified tax professional for guidance specific to their individual circumstances.
