Income Tax Law
Income-tax Act, 2025 · CHAPTER XV — RETURN OF INCOME
Section 263Return of income.
Income-tax Act, 2025 (30 of 2025)
Return of income.
B.-Filing of return of income
Return of income.
263.
(1)(a)Every person as mentioned below shall, for a tax year, on or before the due date, furnish a return of his income or the income of any other person in respect of which he is assessable during the said tax year:—
(i)a company;
(ii)a firm;
(iii)a person other than a company or a firm, if his total income or the total income of any other person in respect of which he is assessable under this Act during the tax year, without giving effect to the provisions of Chapter XVII-B or provisions of Schedule VIII (Table: Sl. No. 1) or deductions allowable under section 82 or 83 or 84 or 85 or 86 or 87 or 88 of Chapter IV-E or Chapter VIII, as the case may be, exceeded the maximum amount which is not chargeable to income-tax;
(iv)a specified entity, if its total income without giving effect to the provisions of section 11 exceeds the maximum amount which is not chargeable to income-tax;
(v)a University, college or other institution as referred to in section 45(3)(a);
(vi)a business trust;
(vii)an investment fund as referred to in section 224;
(viii)a person who has sustained a loss in the tax year under the head “Profits and gains of business or profession” or under the head “Capital gains” and who intends to claim that such loss, or any part thereof, is to be carried forward as per this Act;
(ix)a person, who is a resident, other than not ordinarily resident, and who at any time during the tax year,—
(A)holds, as a beneficial owner or otherwise, any asset (including any financial interest in an entity) located outside India, or has signing authority in any account located outside India; or
(B)is a beneficiary of any asset (including any financial interest in an entity) located outside India, except where any income arising from such asset is includible in the income of person referred to in item (A);
(x)a person, other than a company or firm, who during the tax year, fulfils such conditions as may be prescribed;
(b)the persons referred in clause (a)(i), (a)(ii), (a)(v), (a)(vi), (a)(vii) and (a)(ix) shall furnish return on or before the due date regardless of income or loss;
(c)for the purposes of this section, “due date” means the date of the financial year succeeding the relevant tax year as mentioned in the corresponding entry of column C of the Table below in respect of the persons mentioned in column B of the said Table:
| Sl. No. | Person | Due date |
|---|---|---|
| 1. | Assessee, including the partners of the firm or the spouse of such partner (if section 10 applies to such spouse), who is required to be furnished a report referred to in section 172. | 30th November. |
| 2. | Company (in cases other than those mentioned in Sl. No. 1). | 31st October. |
| 3. | Person (other than a company) whose accounts are required to be audited under this Act or under any other law in force (in cases other than those mentioned in Sl. No. 1). | 31st October. |
| 4. | Partner of a firm whose accounts are required to be audited under this Act or under any other law in force; or the spouse of such partner (if section 10 applies to such spouse) (in cases other than those mentioned in Sl. No.1). | 31st October. |
| 5. | Any other assessee. 31st July. (2)(a) The Board may prescribe form for furnishing return of income, manner of its verification and such other particulars including— (i) the class or classes of persons who shall be required to furnish the return in electronic form or otherwise; (ii) the form and the manner in which the return may be furnished, whether in electronic form or otherwise; (iii) the documents, statements, receipts, certificates, audited reports or any other documents which may not be furnished along with the return in electronic form but shall be produced before the Assessing Officer on demand; (iv) the computer resource or the electronic record to which the return in electronic form may be transmitted; (b) the particulars prescribed under clause (a) may also include— (i) income exempt from tax; (ii) assets of the prescribed nature and value held by the assessee as a beneficial owner or otherwise or in which he is a beneficiary; (iii) bank account and credit card held by the assessee; (iv) expenditure exceeding the prescribed limit incurred by the assessee under prescribed heads; (v) such other outgoings as may be prescribed; (vi) the report of any audit referred to in section 63 or a copy thereof; (vii) the particulars of the location and style of the principal place of the business or profession and all the branches thereof; (viii) the names and addresses of the partners, if any, in the business or profession; (ix) | the names of the other members of the association of person or the body of individuals and the extent of the share of the assessee and the shares of all such members in the profits of the business or profession and any branches thereof. |
(3)The Central Government may, by notification, exempt any class or classes of persons, from the obligation to file a return of income under this section, subject to the conditions specified therein.
(4)Any person who has not furnished a return within the time allowed to him under sub-section (1), may furnish the return for any tax year at any time within nine months from the end of the relevant tax year, or before the completion of the assessment, whichever is earlier.
(5)If any person, having furnished a return under sub-section (1) or sub-section (4), discovers any omission or any wrong statement therein, he may furnish a revised return at any time within nine months from the end of the relevant tax year, or before the completion of the assessment, whichever is earlier.
(6)(a)Any person, whether or not he has furnished a return under sub-section (1) or (4) or (5) for a tax year, may furnish an updated return of his income or the income of any other person in respect of which he is assessable under this Act, at any time within forty-eight months from the end of the financial year succeeding the relevant tax year;
(b)the provisions of clause (a) shall continue to apply for a tax year if any person has sustained a loss in the said tax year and has furnished a return of loss within the due date specified under sub-section (1) and the updated return is a return of income;
(c)the provisions of clause (a) shall not apply for a tax year for any person, if—
(i)the updated return is a return of loss for the said tax year; or
(ii)the updated return has the effect of decreasing the total tax liability determined on the basis of return furnished under sub-section (1) or (4) or (5) for the said tax year; or
(iii)the updated return results in refund where no refund was due or increases the refund due on the basis of return furnished under sub-section (1) or (4) or (5) for the said tax year; or
(iv)an updated return has already been furnished for the said tax year; or
(v)any proceeding for assessment or reassessment or recomputation or revision of income under this Act is pending or has been completed for the said tax year; or
(vi)the Assessing Officer is in the possession of information in respect of such person for the said tax year regarding violation of specified laws and the same has been communicated to him prior to the date of furnishing of updated return; or
(vii)information for the said tax year has been received under an agreement referred to in section 90 or 90A of Income-tax Act, 1961 (43 of 1961) or section 159 of this Act in respect of such person and the same has been communicated to him, prior to the date of furnishing of updated return; or
(viii)any prosecution proceedings under the Chapter XXII have been initiated for the said tax year in respect of such person, prior to the date of furnishing of updated return; or
(ix)thirty-six months have expired from the end of the financial year succeeding the relevant tax year, and any notice to show-cause under section 281 has been issued in his case, except where an order has been passed under section 281(3) determining that it is not a fit case to issue notice under section 280; or
(x)he is such person or belongs to such class of persons, as may be notified by the Board in this regard;
(d)a person shall also not be eligible to furnish an updated return of income, where—
(i)a search has been initiated under section 247 or books of account or other documents or any assets are requisitioned under section 248 in the case of that person; or
(ii)a survey has been conducted under section 253, other than sub-section (4) of the said section, in the case of that person; or
(iii)a notice has been issued under section 294 in pursuance to the provisions of section 295, to that person,
for the tax year in which such search is initiated or survey is conducted or requisition is made and any tax year preceding such tax year;
(e)if a person has furnished a return of income under clause (a) for a tax year, and as a result the loss or any part thereof carried forward under Chapter VII or unabsorbed depreciation carried forward under section 33(3)(b) or tax credit carried forward under section 206(1)(m) to (p) and 206(2)(e) to (h) is to be reduced for any subsequent tax year, then, an updated return shall be furnished for each such subsequent tax year.
(7)A return of income furnished under this section, shall be treated as defective if it is not in conformity with all the conditions as may be prescribed and shall be dealt with in the following manner:—
(a)where the Assessing Officer considers that the return of income furnished by the assessee is defective, he may intimate the defect to the assessee and give him an opportunity to rectify the defect within fifteen days from the date of such intimation or within a further period as may be allowed on an application made by the assessee in this behalf;
(b)if the defect is not rectified within the period allowed under clause (a), then the return shall be treated as an invalid return and the provisions of this Act shall apply as if the assessee had failed to furnish the return;
(c)where the assessee rectifies the defect after the expiry of the period allowed under clause (a), but before the assessment is made, the Assessing Officer may condone the delay and treat the return as a valid return.
(8)(a)The provisions of this section shall also apply to a return of income which is furnished in pursuance of an order passed under section 239(3)(b);
(b)the provisions of this section shall not apply to a specified senior citizen, as referred to in section 402(39), for the relevant tax year in which tax has been deducted at source under section 393(1) [Table: Sl. No. 8(iii)].
(9)For the purposes of this section,—
(a)“beneficial owner”, in respect of an asset means an individual who has provided, directly or indirectly, consideration for the asset for the immediate or future benefit, direct or indirect, of himself or any other person;
(b)“beneficiary”, in respect of an asset means an individual who derives benefit from the asset during the tax year and the consideration for such asset has been provided by any person other than such beneficiary;
(c)“specified entity” means—
(i)research association referred to in Schedule III (Table: Sl. No. 23);
(ii)association or institution referred to in Schedule III (Table: Sl. No. 24);
(iii)person referred to in Schedule VII (Table: Sl. No. 2);
(iv)institution referred to in Schedule III (Table: Sl. No. 25);
(v)any University or other educational institution or any hospital or other medical institution referred to in Schedule VII (Table: Sl. Nos. 17, 18 and 19);
(vi)Mutual Fund referred to in Schedule VII (Table: Sl. Nos. 20 and 21);
(vii)securitisation trust referred to in Schedule III (Table: Sl. No. 26);
(viii)Investor Protection Fund referred to in Schedule III (Table: Sl. Nos. 28 and 29);
(ix)Core Settlement Guarantee Fund referred to in Schedule III (Table: Sl. No. 30);
(x)venture capital company or venture capital fund referred to in Schedule V (Table: Sl. No. 6);
(xi)trade union or association referred to in Schedule III (Table: Sl. No. 31);
(xii)Board or Authority referred to in Schedule VII (Table: Sl. Nos. 33 and 40);
(xiii)Body or Authority or Board or Trust or Commission (by whatever name called) referred to in Schedule III (Table: Sl. No. 36);
(xiv)infrastructure debt fund referred to in Schedule VII (Table: Sl. No. 46);
(d)“specified laws” shall refer to the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 (13 of 1976), or the Prohibition of Benami Property Transactions Act, 1988 (45 of 1988), or the Prevention of Money-laundering Act, 2002 (15 of 2003), or the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (22 of 2015).
This section refers to
§ Schedule III INCOME NOT TO BE INCLUDED IN TOTAL INCOME OF ELIGIBLE PERSONS
§ Schedule V INCOME NOT TO BE INCLUDED IN TOTAL INCOME OF CERTAIN ELIGIBLE PERSONS INCLUDING INVESTMENT FUNDS, BUSINESS TRUSTS AND THEIR UNIT HOLDERS
§ Schedule VII Persons Exempt From Tax
§ Schedule VIII INCOME NOT TO BE INCLUDED IN THE TOTAL INCOME OF POLITICAL PARTIES AND ELECTORAL TRUSTS
§ 10 Apportionment of income between spouses governed by Portuguese Civil Code
§ 11 Incomes not included in total income
§ 159 Agreement with foreign countries or specified territories and adoption by Central Government of agreement between specified associations for double taxation relief
§ 172 Report from an accountant to be furnished by persons entering into international transaction or specified domestic transaction
§ 206 Special provision for minimum alternate tax and alternate minimum tax.
§ 224 Tax on income of investment fund and its unit holders
§ 239 Instructions to subordinate authorities
§ 247 Search and seizure
§ 248 Powers to requisition
§ 253 Powers of survey
§ 280 Issue of notice where income has escaped assessment
§ 281 Procedure before issuance of notice under section 280
§ 281 Procedure before issuance of notice under section 280
§ 294 Procedure for block assessment
§ 295 Undisclosed income of any other person
§ 33 Deduction for depreciation
§ 393 Tax to be deducted at source.
§ 402 Interpretation.
§ 45 Expenditure on scientific research
§ 63 Tax audit
§ 82 Profit on sale of property used for residence
§ 90 Meaning of “adjusted”, “cost of improvement” and “cost of acquisition”
Referenced by
§ 121 Submission of return for losses
§ 173 Definitions of certain terms relevant to determination of arm’s length price, etc
§ 201 Tax on income of new manufacturing domestic companies.
§ 209 Tax on income from bonds or Global Depository Receipts purchased in foreign currency or capital gains arising from their transfer.
§ 211 Tax on non-resident sportsmen or sports associations.
§ 216 Return of income not to be furnished in certain cases
§ 217 Benefit under Chapter to be available in certain cases even after assessee becomes resident
§ 218 Chapter not to apply if the assessee so chooses
§ 265 Return by whom to be verified.
§ 349 Return of income
§ 35 Amounts not deductible in certain circumstances
§ 428 Fee for default in furnishing return of income
§ 433 Form of claim for refund and limitation
§ 534 Laying before Parliament
§ Schedule VIII INCOME NOT TO BE INCLUDED IN THE TOTAL INCOME OF POLITICAL PARTIES AND ELECTORAL TRUSTS
Rule 101 Procedure governing safe harbour rules for income attribution in case of income from business and profession
Rule 111 Roll back of Agreement
Rule 123 Maintenance and furnishing of information and document by constituent entity of an international group under section 171
Rule 125 Furnishing of authorisation and maintenance of documents, etc. for the purposes of section 176
Rule 134 Exercise of option for taxation of royalty income from patent under section 194(1)[Table: Sl. No. 2]
Rule 136 Exercise or withdrawal of option for new tax regime
Rule 139 Computation of exempt income of specified fund attributable to units held by non-resident under Schedule VI [Table: Sl. Nos. 1 to 4] to Act
Rule 140 Determination of income of a specified fund attributable to units held by non-residents under section 210(2)
Rule 141 Computation of exempt income of specified fund, attributable to investment division of an offshore banking unit under Schedule VI [Table: Sl. Nos. 1 to 4] to Act
Rule 142 Conditions referred to in Schedule VI [Note 1(g)(ii)(B)] to Act required to be fulfilled by an investment division of an offshore banking unit
Rule 143 Determination of income of a specified fund attributable to investment division of an offshore banking unit under section 210(3)
Rule 163 Conditions for furnishing return of income by persons other than a company or firm referred to in section 263(1)(a)(x)
Rule 164 Forms, eligibility, verification etc. in respect of return of income
Rule 165 Furnishing of updated return of income under section 263(6) read with sub-section (2) of said section
Rule 166 Conditions for treating a return as defective return under section 263(7)
Rule 184 Exercise of options by a registered non-profit organisation under section 341(7) for deemed application under section 341(5)
Rule 185 Furnishing of statement by registered non-profit organisation under section 342(1) for accumulating or setting apart any part of its regular income
Rule 188 Report of audit in case of registered non-profit organisations under section 348
Rule 213 Application for grant of certificates for deduction or collection of income-tax at any lower rates, or no deduction of income-tax
Rule 242 Obligation for reporting transaction of crypto-asset under section 509
Rule 25 Depreciation
Rule 27 Form of statement to be furnished regarding certain preliminary expenses eligible for deduction under section 44
Rule 282 Notification of pension fund and other conditions to be satisfied by the pension fund
Rule 283 Computation of minimum investment and exempt income for purposes of Schedule V [Table: Sl. No. 7] to Act
Rule 285 Computation of exempt income in nature of capital gains in connection with relocation of original fund, etc
Rule 288 Procedure for setting up an Infrastructure Debt Fund for purpose of exemption under Schedule VII [Table: Sl. No. 46] to Act
Rule 289 Rules for functioning of an electoral trust
Rule 29 Prescribed authority and process of approval for expenditure on scientific research under section 45(1)(a)(ii) and (2)
Rule 30 Prescribed authority and process of approval for expenditure on scientific research under section 45(3)(c)
Rule 33 Conditions subject to which approval is to be granted to a research association for deduction for expenditure on scientific research under section 45(4) read with section 45(3)(a)
Rule 34 Conditions subject to which approval is to be granted to a University, college or other institution for deduction for expenditure on scientific research under section 45(4) read with section 45(3)(a)
Rule 35 Prescribed authority, procedure, form, manner and conditions for approval by a company for deduction for expenditure on scientific research under section 45(3)(b)
Rule 38 Conditions for notification of agricultural extension projects under section 47(1)(a)
Rule 40 Conditions subject to which a skill development project is to be notified under section 47(1)(b)
Rule 50 Attribution of income taxable under section 67(10) to capital assets remaining with the specified entity, under section 72
Rule 73 Relief under section 157(1), when salary is paid in arrears or in advance, gratuity, etc
Rule 74 Taxation of income from retirement benefit account maintained in a notified country
Rule 76 Foreign tax credit
Rule 82 Exercise of option for determination of arm's length price for multiple years in a single proceeding
Rule 83 Time period for repatriation of excess money under section 170(2) and computation of interest income under section 170(4) pursuant to secondary adjustments
Rule 85 Report from an accountant to be furnished under section 172
Rule 90 Procedure relating to transactions other than provision of information technology services
Rule 91 Procedure relating to transactions of provision of information technology services
Rule 98 Procedure governing safe harbour rules for specified domestic transactions