ITR filing: What is a defective income tax return? How to rectify it?

The last date to file your income tax return (ITR) is July 31. Missing the deadline may lead to punishments ranging from ₹5,000 fine to a maximum of two years’ imprisonment if the tax evasion amount exceeds ₹25 lakh.

You should be careful while filing your ITRs and submit necessary proofs for claiming deductions and other exemptions. Failing to adhere to the norms will result your filing to be declared a defective ITR.

What is a Defective ITR?

A defective income tax return refers to the situation in which an ITR filed by the taxpayer is considered incomplete or incorrect by the Income Tax Department. It simply means that the ITR does not meet the necessary requirements or contains errors needed to be rectified for the tax filing process to be considered valid.

“Let’s consider an example to understand this better. Mr Rahul, a salaried individual, filed his ITR for the assessment year (AY) 2022-2023. In his return, he forgot to include one of his bank accounts’ interest income, which amounted to Rs. 20,000. As a result, the ITR filed by Mr Rahul is considered defective because it is incomplete and does not disclose all his income sources”, Amit Gupta, managing director at SAG Infotech, told Hindustan Times.

How to rectify?

If the I-T department finds any discrepancies or missing information in the income tax return, it will issue an intimation notice to the taxpayer. The notice will explain the defects and provide an opportunity to correct them.

Secondly, the taxpayers must correct the discrepancies mentioned in the notice from the I-T department within the specified timeframe.

The taxpayers can correct their defective ITR online through the Income Tax e-filing portal. They can log in, select the “Rectification” option under the “My Account” tab, and make the necessary changes.