Section 263: filing of return of income

Who must file a return

Section 263(1)(a) requires the following persons to furnish a return of their income, or of income of another person for which they are assessable, on or before the due date:

• A company
• A firm
• Any other person (not a company or firm) whose total income, or the total income of a person they are assessable for, exceeded the maximum amount not chargeable to income-tax - computed without giving effect to TDS provisions (Chapter XVII-B), Schedule VIII (Sl. No. 1), or deductions under Sections 82, 83, 84, 85, 86, 87 or 88 (Chapter IV-E) or Chapter VIII
• A specified entity, if its total income (without giving effect to Section 11) exceeds the maximum amount not chargeable to tax
• A University, college or other institution referred to in Section 45(3)(a)
• A business trust
• An investment fund as referred to in Section 224
• A person who has sustained a loss in the tax year under "Profits and gains of business or profession" or "Capital gains" and intends to carry that loss forward
• A resident (other than not-ordinarily-resident) who, at any time during the tax year, holds (as beneficial owner or otherwise) any asset or financial interest located outside India, has signing authority in an account outside India, or is a beneficiary of such an asset (except where the income from it is already included in the beneficial owner's income)
• A person (other than a company or firm) who fulfils prescribed conditions

Filing regardless of income or loss

Companies, firms, universities/institutions under Section 45(3)(a), business trusts, investment funds under Section 224, and persons holding foreign assets/signing authority (the entities in clauses (a)(i), (ii), (v), (vi), (vii) and (ix) above) must file a return on or before the due date regardless of whether they have income or a loss.

Due dates for filing (current table, as amended by the Finance Act, 2026)

"Due date" for filing under Section 263 depends on the category of person and the applicable condition, as set out below. This is the table as substituted by the Finance Act, 2026 (with effect from 1 April 2026):

Form, manner and particulars of the return

The Board may prescribe the form for the return, the manner of its verification, and other particulars, including which classes of persons must file electronically, the form/manner of electronic filing, which documents need not be attached electronically but must be produced before the Assessing Officer on demand, and the computer resource to which an electronic return may be transmitted.

The prescribed particulars may also cover exempt income, assets of a prescribed nature/value held as beneficial owner or beneficiary, bank accounts and credit cards held, expenditure above prescribed limits under prescribed heads, other prescribed outgoings, audit reports under Section 63, and details of business location, branches, partners, and association/body members.

Exemption from filing by notification

The Central Government may, by notification, exempt any class or classes of persons from the obligation to file a return under this section, subject to conditions specified in that notification.

Belated return

A person who has not furnished a return within the time allowed under sub-section (1) may still furnish a belated 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.

Revised return

If a person, having already furnished a return under sub-section (1) or (4), discovers an omission or wrong statement in it, they may (subject to Section 428(b)) furnish a revised return at any time within twelve months from the end of the relevant tax year, or before the completion of the assessment, whichever is earlier. This twelve-month window reflects the current text as substituted by the Finance Act, 2026, with effect from 1 April 2026.

Updated return

Any person, whether or not they have already filed a return for a tax year, may furnish an updated return of their own income or of income of another person they are assessable for, at any time within forty-eight months from the end of the financial year succeeding the relevant tax year.

This window continues to apply for a tax year where a person has sustained a loss, filed a return of loss within the due date, and the updated return is a return of income or reduces the loss. It also applies where the updated return is filed in pursuance of a notice under Section 280, within the period specified in that notice - in which case the assessee cannot file a return in response to that notice in any other manner.

When an updated return cannot be filed

An updated return under sub-section (6)(a) cannot be filed for a tax year if, among other conditions:

• The updated return is itself a return of loss (except in the specific loss-carry-forward case described above)
• It decreases the total tax liability determined from the earlier return
• It results in a refund where none was due, or increases a refund already due, based on the earlier return
• An updated return has already been furnished for that tax year
• Any assessment, reassessment, recomputation or revision proceeding is pending or completed for that tax year (subject to a specific exception for returns filed under a Section 280 notice)
• The Assessing Officer already possesses and has communicated information about violation of specified laws (the Smugglers and Foreign Exchange Manipulators Act, 1976; the Prohibition of Benami Property Transactions Act, 1988; the Prevention of Money-laundering Act, 2002; or the Black Money Act, 2015) for that person and year
• Information has been received and communicated under a Section 90/90A (1961 Act) or Section 159 agreement
• Prosecution proceedings under Chapter XXII have already been initiated for that year
• Thirty-six months have expired from the end of the financial year succeeding the relevant tax year and a show-cause notice under Section 281 has been issued (unless an order under Section 281(3) determined it was not a fit case for such notice)
• The person belongs to a class notified by the Board as ineligible

Updated return also barred after search, requisition or survey

A person also cannot file an updated return where a search has been initiated under Section 247, books/documents/assets have been requisitioned under Section 248, a survey has been conducted under Section 253 (other than sub-section (4) of that section), or a notice under Section 294 (pursuant to Section 295) has been issued to them - for the tax year in which the search/survey/requisition occurred and any preceding tax year.

If a person files an updated return under sub-section (6)(a) that reduces a loss, unabsorbed depreciation, or tax credit otherwise carried forward, they must also file an updated return for each subsequent tax year affected.

Defective returns

A return that does not conform to prescribed conditions is treated as defective. Where the Assessing Officer considers a return defective, they must intimate the defect to the assessee, who then gets fifteen days from the intimation (or a further period allowed on application) to rectify it.

If the defect is not rectified within the period allowed, the return is treated as invalid, and the Act applies as if the assessee had failed to file a return at all. If the assessee rectifies the defect after the allowed period but before assessment, the Assessing Officer may condone the delay and treat the return as valid.

Other application notes

This section also applies to a return filed pursuant to an order under Section 239(3)(b).

This section does not apply to a specified senior citizen (as referred to in Section 402(39)) for a tax year in which tax has been deducted at source under Section 393(1) [Table: Sl. No. 8(iii)].

Frequently asked questions