ITR defective notice: 15 days to respond or face penalty

Taxpayers who filed their income tax returns for Assessment Year 2026-27 may receive a defective notice under Section 139(9) if the return contains missing, inconsistent, or incorrect information. Common reasons include claiming TDS credit without reporting the corresponding income, a mismatch between gross receipts and Form 26AS, a PAN name mismatch, or incomplete business details. The Income Tax Department communicates the defect via email, post, or the e-filing portal.

The taxpayer has 15 days from the date of receiving the notice to correct the defect or submit a response, or as specified in the notice. An extension may be sought if needed. If the defect is not rectified within the stipulated period, the return may be treated as invalid, leading to possible interest, penalties, loss of carry-forward losses, and loss of specific exemptions. Alternatively, a revised return can be filed online until 31 March 2027 or before the assessment is completed, whichever is earlier, according to livemint.com. If that window is missed, an updated return (ITR-U) can be filed within 48 months of the assessment year with additional tax and interest.

Livemint also reports that there may not be a direct penalty for filing the wrong ITR form if the mistake is genuine and corrected within the timeline. However, if the incorrect filing leads to underreporting of income or inaccurate disclosures, taxpayers may face interest, penalties, or scrutiny proceedings.