Tax season is in full swing, with the income tax department releasing all the key forms and taxpayers filing their income tax returns. Every tax season, many people end up filing their returns in the wrong ITR form, often without even realising it. It could be as simple as using ITR-1 when you actually had capital gains, or selecting a form that does not account for professional income or foreign assets.
And this when the trouble usually begins.
The Income Tax Department has become stricter with validation checks over the years, and in many such cases, it sends out a “defective return” notice under Section 139(9). This basically means the form you filed does not match your financial profile, and unless you fix it, your return might be treated as not filed at all. That can lead to delayed refunds, or worse, penalties.
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If you have made this mistake, or if you have received a defective return notice, don’t panic. You still have time to sort things out.
What You Can Do If You Filed the Wrong Form
1. You can file a revised return
If you observe that a mistake has been made in your return filing (before it is processed), you can simply file a revised return Section 139(5). Here’s how you can do this:
Log in to the e-filing portal
Choose the revised return option
Enter the original filing details
Pick the correct ITR form, and re-file your return
But remember, this is more of a correction than a re-do.
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2. E-verify your return
After you have filed the revised return, make sure you remember to e-verify it. This step often gets missed but is important. If you don’t e-verify within 30 days, the return may not get considered as ‘valid’. You can do this via Aadhaar OTP, net banking, or simply through the digital signature.
What to do if your return has already been processed?
In case the return has already been processed it doesn’t mean you are completely stuck. You will have to raise a rectification request under Section 154 of the Income Tax Act 1961 through the income tax portal. However, taxpayers should remember that this works for small corrections, but in more complex cases, say, if you need to change the income type or have multiple discrepancies, it is better to consult a CA.
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Don’t miss the deadlines
Importantly, remember that there is a deadline for all of this. Revised or rectified returns need to be filed before the end of the assessment year (for this filing season it's March 31 for financial year 2024-25) or before the original is processed, whichever happens first.
What to do if you received a ‘Defective Return Notice’
You usually get 15 days to fix things once a defective return notice is issued. If you don’t act within this window, your return may be treated as invalid. That also means any refund you were expecting could get stuck. If you need more time, you can request an extension through the portal.
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A wrong ITR form is definitely not something to leave unattended. Fix it early, file the right form, and make sure to verify it. And if it’s too technical, it’s worth getting help, better to pay a little now than deal with a bigger mess later.