My return has been treated as defective under section 139(9) (now section 263(7)). What now?

A defective-return notice is issued under section 139(9) of the Income-tax Act, 1961 (now section 263(7) of the Income-tax Act, 2025). Returns for FY 2025-26 and earlier fall under the 1961 Act; the 2025 Act keeps the same 15-day rule for later years.

Common reasons

• Wrong ITR form, for example ITR-1 or ITR-4 used despite capital gains, a directorship or foreign assets.
• Gross receipts shown, but profit and loss or balance sheet details missing, for business income.
• Tax deducted claimed without showing the income on which it was deducted.
• Audit required but the audit report not filed, or its details not shown in the return.
• Tax payable not paid before filing.

How to respond

1. Open the notice under Pending Actions > e-Proceedings on the e-filing portal. It names the error code and the defect.
2. Decide whether you agree.
   • If you agree, file the corrected return in response to the notice, on the correct form if necessary, fixing every defect listed.
   • If you disagree, choose that option and give your reasons.
3. Respond within the time allowed, usually 15 days from the date of the notice. You can ask for more time on the portal, giving reasons, before the period ends.

The corrected return is treated as the original return and keeps its original filing date.

If you do not respond

The return is treated as invalid, as if it had never been filed. That can mean:

• the loss of any refund until a fresh return is filed;
• late fees and interest for not filing;
• losses not carried forward; and
• in some cases, a notice for not filing a return.

If the time for an ordinary return has passed, the only way to regularise the year may be a belated or updated return, so respond promptly.