Section 263 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 263(1) says who must furnish a return of income for a tax year and by when. It lists ten classes of person, names six that must file whatever their income or loss, and sets the due dates in a Table. This article covers sub-section (1) only, as per the Income-tax Act, 2025 as amended by the Finance Act, 2026. Late, revised, updated and defective returns (sub-sections (2) to (9)) are in a sister article.
Companies, firms and persons whose income exceeds the maximum amount not chargeable to income-tax must furnish a return on or before the due date, as must the other classes in section 263(1)(a). Six classes file regardless of income or loss. The Table in clause (c) sets the due dates: 31st July, 31st August, 31st October or 30th November of the financial year succeeding the relevant tax year, depending on the person and the conditions.
By section 1(3), the Act is in force from 1 April 2026, save as otherwise provided. Section 263 is shown as amended by section 66 of the Finance Act, 2026; the Table in clause (c) is printed as substituted with effect from 1 April 2026, and this article follows the Table as it now stands. Later amendments, rules and notifications should be checked. For preparing and filing your return, see our income tax return filing service.
Who must furnish a return: clause (a)
Every person 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 tax year:
| Clause | Person |
|---|---|
| (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 for which he is assessable) during the tax year, without giving effect to Chapter XVII-B, or Schedule VIII (Table: serial number 1), or deductions allowable under sections 82 to 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 section 11 exceeds the maximum amount 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 "Profits and gains of business or profession" or "Capital gains" and intends to carry it forward as per the 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 such asset, except where income from the asset is includible in the income of the person in item (A) |
| (x) | A person, other than a company or firm, who during the tax year fulfils such conditions as may be prescribed |
The terms "beneficial owner", "beneficiary" and "specified entity" are defined in section 263(9); that sub-section is explained in our sister article on belated, revised, updated and defective returns. The conditions in clause (x) are left to the Income-tax Rules, 2026. Tax deducted at source under Chapter XIX-B is a separate matter; see our overview of section 393.
Regardless of income or loss: clause (b)
The persons in clauses (a)(i), (a)(ii), (a)(v), (a)(vi), (a)(vii) and (a)(ix) must furnish a return on or before the due date regardless of income or loss. That is: a company, a firm, a University or similar institution under section 45(3)(a), a business trust, an investment fund under section 224, and a resident (other than not ordinarily resident) with an overseas asset or signing authority as described.
The due dates: clause (c)
"Due date" for the persons in column B of the Table, subject to the conditions in column C, is the due date of the financial year succeeding the relevant tax year in column D:
| Serial number | Person (column B) | Conditions (column C) | Due date (column D) |
|---|---|---|---|
| 1 | Assessee, including the partners of the firm or the spouse of such partner (if section 10 applies to such spouse) | Where the provisions of section 172 apply | 30th November |
| 2 | (i) Company; (ii) assessee (other than a company) whose accounts are required to be audited under the Act or any other law in force; (iii) partner of a firm whose accounts are required to be audited under the Act or any other law, or the spouse of such partner (if section 10 applies to such spouse) | Where the provisions of section 172 do not apply | 31st October |
| 3 | (i) Assessee having income from profits and gains of business or profession whose accounts are not required to be audited under the Act or any other law; (ii) partner of a firm whose accounts are not required to be audited, or the spouse of such partner (if section 10 applies to such spouse) | Where the provisions of section 172 do not apply | 31st August |
| 4 | Any other assessee | (none printed) | 31st July |
No condition is printed against serial number 4. Section 172, to which the conditions in serial numbers 1 to 3 refer, is not explained in this article.
The audit requirement in serial numbers 2 and 3 connects to section 63 on tax audit and its specified date; see our post on section 63, tax audit limits and the specified date.
Where the earlier Act's provision sits
If you are tracing the provision from the earlier Act, see our note on where the earlier Act's provision sits in the 2025 Act.
A worked example
Names and facts are assumed; the dates are those printed in the Table, and the tax year is assumed to be the twelve months beginning 1 April 2026.
- Pinewood Components Pvt Ltd (a company, serial number 2, section 172 not applying). Under clause (a)(i) it must file a return, and under clause (b) it must file whatever its income or loss. The financial year succeeding the tax year begins on 1 April 2027, so the due date is 31st October of that financial year, that is 31 October 2027.
- Mr. Harish Verma, a trader whose accounts are not required to be audited under the Act or any other law and whose total income is above the maximum amount not chargeable to income-tax. Clause (a)(iii) applies. Serial number 3 gives 31st August, which is 31 August 2027.
- Ms. Leela Rao, a salaried person in the same position, with no business income and no audit. Serial number 4 (any other assessee) gives 31st July, which is 31 July 2027.
- Mr. Varun Shah, resident, who has a financial interest in an entity located outside India at some time in the tax year. Clause (a)(ix) applies and, under clause (b), he must file even if his income is nil.
Need help with your return and due date?
Which row of the Table applies depends on whether accounts are required to be audited, whether the person is a partner, and whether section 172 applies. Our team can work out your due date and prepare the return through our income tax return filing service.
Key takeaways
- Section 263(1)(a) lists ten classes of person who must furnish a return.
- Six classes must file regardless of income or loss, including companies, firms and residents with overseas assets or signing authority.
- A person who has sustained a loss under business or capital gains and wants to carry it forward must file.
- The due dates are 31st July, 31st August, 31st October or 30th November, of the financial year succeeding the relevant tax year.
- The Table was substituted by the Finance Act, 2026, with effect from 1 April 2026.
Read next
- Section 263(2) to (9): belated, revised, updated and defective returns
- Section 262: permanent account number
- Sections 264 and 265: tax return preparers and verification of return
- Chapter XV: return of income
Disclaimer: Based on the Income-tax Act, 2025 (30 of 2025) as amended by the Finance Act, 2026, as consulted on 2 October 2026. It explains the words of the Act only; the Income-tax Rules, 2026, notifications, circulars, later amendments and the way the tax authorities and courts apply these provisions should be checked. This article is general information, not legal advice; check the official text before acting.