ITR Filing FY 2024-25: Here's How To Correct Defective Returns And Avoid Penalties

If the error isn’t rectified within the stipulated period, the return may be treated as “not filed,” potentially resulting in penalties and stalled refunds

Revised or rectified filings must be submitted before March 31, 2026 (for FY 2024-25), or before the original return is assessed, whichever comes first

Source : ABPLIVE AI

With tax filing season in full swing, a growing number of taxpayers are falling into compliance traps by submitting incomplete or incorrect Income Tax Returns (ITRs). These errors are triggering “defective return” notices under Section 139(9) of the Income Tax Act, as authorities tighten checks amid evolving return formats and robust validation mechanisms.

One of the most common missteps involves filing ITR-1 despite having income from capital gains, foreign assets, or freelance/professional work. Such discrepancies render the return invalid. Upon detection, the Income Tax Department typically issues a 15-day notice, allowing taxpayers to correct the errors.

If the error isn’t rectified within the stipulated period, the return may be treated as “not filed,” potentially resulting in penalties and stalled refunds. Here are some steps to correct defective returns

File A Revised Return

If a mistake is identified before processing, taxpayers can submit a revised return under Section 139(5). This involves logging into the income tax portal, selecting the ‘Revised Return’ option, inputting original details, and uploading the corrected ITR form.

E-Verify Without Delay

The revised return must be e-verified within 30 days using Aadhaar OTP, digital signature, or net banking. Failing to verify on time could again invalidate the submission.

Use Rectification If Return Is Already Processed

For minor mistakes caught post-processing, Section 154 allows for rectification. Taxpayers can initiate this through the ‘Rectification’ tab on the portal. If unsure, it’s wise to consult a tax advisor.

Stay Ahead Of Deadlines

Revised or rectified filings must be submitted before March 31, 2026 (for FY 2024-25), or before the original return is assessed, whichever comes first.

Respond To Notices Promptly

Failure to acknowledge or respond to defective return notices within 15 days may void the return. Taxpayers can request deadline extensions through the portal, if needed.