Sections 264 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 264 lets the Board make a notified Scheme under which certain persons can furnish returns through an authorised tax return preparer. Section 265 says who must verify a return of income for each kind of person: individual, Hindu undivided family, company in its different situations, firm, limited liability partnership, local authority, political party, association and any other person. This article explains both as per the Income-tax Act, 2025 as amended by the Finance Act, 2026.
The Board may make a Scheme, by notification, for returns to be furnished through an authorised tax return preparer, irrespective of section 263. Under section 265, the return must be verified by the person named in the Table: for example, the individual himself, the karta of a Hindu undivided family, the managing director of a company, the managing partner of a firm or the designated partner of a limited liability partnership, with stated substitutes when that person cannot act.
By section 1(3), the Act is in force from 1 April 2026, save as otherwise provided. No Finance Act, 2026 amendment is named for these sections. Later amendments, rules and notifications should be checked. For preparing and filing a return, see our income tax return filing service.
Section 264: Scheme for submission of returns through tax return preparers
The Scheme: sub-section (1)
The Board may make a Scheme for furnishing returns of income through a tax return preparer, and the Scheme shall be notified. It:
- (a) may enable any specified class or classes of persons to prepare and furnish returns through a tax return preparer authorised to act as such under the Scheme; and
- (b) may be made irrespective of the provisions of section 263.
Definitions: sub-section (2)
- "Tax return preparer" means any individual, not being a person referred to in section 515(3)(a)(ii) or an employee of the "specified class or classes of persons", who has been authorised to act as a tax return preparer under the Scheme.
- "Specified class or classes of persons" means any person, other than a company or a person whose accounts are required to be audited under section 63 or under any other law, who is required to furnish a return of income under the Act.
Notification: sub-section (3)
Every notification for the Scheme shall be issued as per section 534.
Whether a Scheme has been notified, and what it provides, is not in the text consulted; no Scheme is named here, and the section itself sets out no fee, form or procedure. For the persons who must file, see our article on section 263(1). For tax audit, see our post on section 63.
Section 265: return by whom to be verified
The return of income under section 263 required to be furnished by the person in column B of the Table shall be verified by the person in the corresponding entry in column C:
| Serial number | Person furnishing return of income (column B) | To be verified (column C) |
|---|---|---|
| 1 | An individual | (i) By the individual himself; (ii) where the individual is mentally incapacitated from attending to his affairs, by his guardian or any other person competent to act on his behalf; (iii) where, for any other reason, it is not possible for the individual to verify the return, by any person duly authorised by him through a valid power of attorney |
| 2 | A Hindu undivided family | (i) By the karta; (ii) where the karta is absent from India or is mentally incapacitated from attending to his affairs, by any other adult member of such family |
| 3 | A company in cases other than those mentioned at serial numbers 4, 5, 6 and 7 | (i) By the managing director of the company; (ii) where there is no managing director, or the managing director is not able to verify the return due to any unavoidable reason, by any director of the company or any other person as may be prescribed for verifying the return |
| 4 | A company not being resident in India | By any person holding a valid power of attorney from the company to do so |
| 5 | A company which is being wound up by orders of the Court or otherwise, or where any person has been appointed as receiver of any assets of the company | By the liquidator as referred to in section 322(1) |
| 6 | A company whose management has been taken over by the Central Government or any State Government under any law | By the principal officer of the company |
| 7 | A company for which an application seeking corporate insolvency resolution process has been admitted by the Adjudicating Authority under section 7 or 9 or 10 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016) | By the insolvency professional appointed by such Adjudicating Authority; "insolvency professional" and "Adjudicating Authority" have the meanings assigned in sections 3(19) and 5(1) of that Code |
| 8 | A firm | (i) By the managing partner; (ii) where the managing partner is not able to verify the return due to any unavoidable reason, or there is no managing partner as such, by any partner of the firm, not being a minor |
| 9 | A limited liability partnership | (i) By the designated partner; (ii) where the designated partner is not able to verify the return due to any unavoidable reason, or where there is no designated partner, by any partner of the limited liability partnership or any other person as may be prescribed for verifying the return |
| 10 | A local authority | By the principal officer of the local authority |
| 11 | A political party as referred to in section 263(1)(a)(iii) | By the chief executive officer of such political party (whether the chief executive officer is known as secretary or by any other designation) |
| 12 | Any other association | (i) By any member of the association; or (ii) by the principal officer of the association |
| 13 | Any other person | (i) By the person himself; or (ii) by any person competent to act on his behalf |
One drafting point: in serial number 7 the printed text ends the entry with "where—" followed by the two definitions, with no condition after the dash. The meaning is clear from the definitions. The Insolvency and Bankruptcy Code, 2016 is another law; the reader should check it.
The Act does not itself say what verification consists of or in what form; the manner of verification is for the Board to prescribe under section 263(2). The sister article on section 263(2) to (9) covers that sub-section.
Summary: who signs for whom
| Person | Primary verifier | Fallback |
|---|---|---|
| Individual | The individual | Guardian or competent person if mentally incapacitated; power of attorney holder if not otherwise possible |
| Hindu undivided family | Karta | Any other adult member if karta absent from India or mentally incapacitated |
| Company (general) | Managing director | Any director, or a prescribed person, if none or unable |
| Company not resident in India | Person holding valid power of attorney | None stated |
| Firm | Managing partner | Any partner, not a minor |
| Limited liability partnership | Designated partner | Any partner or a prescribed person |
A worked example
Names are assumed.
- Mr. Ravi Menon, an individual, falls ill and cannot attend to his affairs because of mental incapacity. Under serial number 1(ii), his guardian, or any other person competent to act on his behalf, verifies his return.
- Chandra Textiles LLP has a designated partner who is travelling and cannot verify the return due to an unavoidable reason. Under serial number 9(ii), any partner of the LLP, or any other person as may be prescribed, verifies it.
- Harbor Foods Ltd., which has no managing director. Under serial number 3(ii), any director, or any other person as may be prescribed, verifies. If the company were being wound up by order of the Court, serial number 5 would apply instead and the liquidator would verify.
- Sparrowhill Inc., a company not resident in India. Under serial number 4, a person holding a valid power of attorney from the company verifies.
Need help with verification and filing?
Choosing the right signatory is simple when the entity is in order, and harder when a director is unavailable or the entity is under insolvency or winding up. Our team can confirm who should sign and file the return through our income tax return filing service.
Key takeaways
- Section 264 enables a notified Scheme for returns through authorised tax return preparers, irrespective of section 263; no Scheme is named in the text consulted.
- A tax return preparer is an individual authorised under the Scheme; the specified class excludes companies and persons whose accounts are required to be audited.
- Section 265 lists thirteen kinds of person with the verifier for each.
- A company's verifier changes in non-residence, winding up, takeover of management or insolvency cases.
- A minor cannot verify a firm's return as a partner under serial number 8(ii).
Read next
- Section 263(2) to (9): belated, revised, updated and defective returns
- Section 263(1): who must file and the due dates
- Section 266: self-assessment tax
- 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.