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Tax
What is a Defective Return and How to rectify?
What Is a Defective Return?
What Is a Defective Return?
A defective return in income tax is a filed return with incomplete details, inconsistent information, or missing particulars required as per Income Tax Act. The department may treat a return as defective if the return or its schedules contain incomplete or inconsistent information, or for some other reason identified during review.
When is the defective return notice is Issued?
When is the defective return notice is Issued?
A defective income tax return notice is issued when the department finds that the return lacks essential information, contains inconsistencies, or has incomplete schedules or particulars such as incorrect bank details, mandatory fields, incorrect residential status.
Where is defective return notice issued?
Where is defective return notice issued?
The department sends a defective notice under Section 263(7) to your registered email ID on your Income Tax Portal or by post and same is also notified on your registered phone number.
The notice is also available on the e-filing portal under the "e-Proceedings" section. If you receive this notice, it means your ITR has errors that need correction.
How to Respond to Defective Return Notice?
How to Respond to a Defective Return?
A defective return is often fixable. The Income Tax Department usually points out the issue, gives you time to respond, and lets you correct the return through the e-Filing portal.
As per official guidance, the response should be filed within 15 days from receipt of the notice, or within the time mentioned in the notice. More time may be requested through adjournment. This step matters because a defective return in income tax can become invalid if no response is filed in time. After submission, keep the acknowledgement safe. Also, check whether the corrected filing needs e-verification, because a return filing process is not complete without verification within the prescribed time. The process is simple and can be completed online.
- To begin, log in to the income tax e-filing portal. Go to the “e-Proceedings” section and find the notice under the "View Notices" tab.
- If you see the income tax return status defective, click on the notice to check the details. The notice explains why the return is flagged and what corrections are needed.
- Once you understand the issue, prepare the corrected return.
After making the necessary corrections, select the option to e-file defective income tax return u/s 263(7). Upload the revised return along with any supporting documents. Ensure that all fields are correctly filled and that no mandatory information is missing.
Once the revised return is successfully submitted, verify it electronically. This ensures that the corrected return is processed without further issues. If you fail to respond within the deadline, the tax department may reject the return, leading to additional tax liability or penalties.
Important note about Section 10(10D) of the Income Tax Act
Conclusion
A defective return should be addressed promptly to ensure compliance and avoid penalties. Read the defective income notice calmly, correct the return carefully, and file the response through the portal within the time limit. Once the defect is rectified and return is verified, no further action is required.
| Section as per Income Tax Act 1961 | Section as per Income Tax Act 2025 |
|---|---|
| 139(9) | 263(7) |
Disclaimer
Disclaimer:
Our content given in this article is as per the existing provisions, laws and regulations as per the Income Tax Act, 2025 and Income Tax Rules, 2026 issued thereunder. Tax laws are subject to amendments made thereto from time to time. The benefits / guidance mentioned herewith should not be considered as opinion / view of the Company. We request to seek independent view from your personal tax advisor on applicable tax benefits / guidance under the said article.