Income Tax Return: What is defective ITR and how can it make you pay a hefty fine

Income Tax Return: The deadline for filing your income tax return is approaching on 31st July 2023. It is crucial to exercise caution while filling out your income tax return to avoid any mistakes that could render your ITR defective.

If your Income Tax Return turns out to be defective, you might receive a notice from the Income Tax Department. However, correcting a defective ITR is relatively straightforward, so there's no need to panic if you receive such a notice. Let's explore how you can rectify a defective ITR.

Under section 139(9) of the Income Tax Act, 1961, the Income Tax Department has the authority to issue a notice if your ITR is found to be defective. Common reasons for a defective ITR include name spelling discrepancies between PAN and ITR, incorrect challan number, wrong assessment year, erroneous TDS return filing, or inaccurate information in your 26AS, AIA, or TIS forms.

Furthermore, a mismatch between your income and TDS or inadequate tax payment even without a tax audit can lead to a defective ITR.

If your ITR is deemed defective, and the deadline for filing ITR has not yet passed for the respective assessment year, you have two options. You can either file a revised ITR to rectify the errors or file a fresh ITR altogether.

In case the deadline has already passed, you must respond to the notice from the Income Tax Department. The Income Tax rules provide provisions for filing an updated ITR under certain circumstances. You may be granted a 15-day window to rectify the mistakes pointed out in the notice.

However, failing to respond to the notice within the given timeframe could result in your ITR being considered invalid, and you may also face penalties for non-compliance with ITR filing requirements.

It is essential to be diligent and meticulous while filing your income tax return to avoid any defects. If you receive a notice, promptly take the necessary steps to rectify the issues. Seeking guidance from a tax professional can be helpful in ensuring compliance with the Income Tax regulations and resolving any concerns related to your ITR.

Please note that this information is for general awareness and should not be considered as professional tax advice. It is always advisable to consult a qualified tax consultant or seek assistance from the Income Tax Department for personalized guidance based on your specific situation.

Read more: From PPF, SSY to ELSS: List of 4 tax saving schemes for women in India