Income Tax Act

Official PDF pages 346–350

SOURCE PDF PAGE 346
forward under section  
48
[ 206(2)( e ) to ( h ) and 206(3) and (4) ]   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 imme -
diate 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);
48.   Substituted for “206(1)( m ) to ( p ) and 206(2)( e ) to ( h )” by the Finance Act, 2026, w.e.f.
1-4-2026 .

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( 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
to 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).
Scheme for submission of returns through tax return preparers.
264 .   (1) The Board may make a Scheme for furnishing returns of income through
a tax return preparer and such Scheme shall be notified, which—
( a )   may enable any specified class or classes of persons in preparing and
furnishing returns of income through a tax return preparer authorised
to act as such under the Scheme;
( b )   may be made irrespective of provisions of section 263.
(2) For the purpose of this section,—
( a )   “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 class -
es of persons”, who has been authorised to act as a tax return preparer
under the Scheme made under this section;
( b )   “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 this Act.
(3) Every notification for the Scheme referred to in sub-section (1) shall be issued
as per section 534 of this Act.

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Return by whom to be verified.
265.   The return of income under section 263 required to be furnished by
the person specified in column B of the Table below shall be verified by the
person specified in corresponding entry in column C of the said Table:
TABLE
Sl.
No.
Person furnishing
return of income
To be verified
A   B   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)
86
.
6.   A   c o m p a n y   w h o s e
management has been
taken over by the Central
Government or any State
Government under any
law.
By the principal officer of the company.

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Sl.
No.
Person furnishing
return of income
To be verified
A   B   C
7.   A company, for which
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, where—
“Insolvency   professional”   and   “Adjudicating
Authority”   shall   have the same meanings as
assigned to them respectively in sections 3( 19 )
87
and 5(1) of the Insolvency and Bankruptcy Code,
2016 (31 of 2016).
8.   A firm.   ( i )   By the managing partner of the firm;
( 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 part -
nership.
( i )   By the designated partner of the limited lia -
bility partnership;
( ii )   where the designated partner of the limited
liability partnership 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.
Self-assessment.
266.   (1) Where, after taking into account the amounts referred to in sub-
section (2), any tax is payable on the basis of any return required to be furnished
under section 263 or 268 or 280 or 294, then––
( a )   the assessee shall be liable to pay such tax together with interest and
fee payable under any provision of this Act for any delay in furnishing

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the return or any default or delay in payment of advance tax, before
furnishing the return; and
( b )   the return shall be accompanied by proof of payment of tax, interest and
fee.
(2) The amounts referred to in sub-section (1) shall be,—
( a )   the amount of tax, if any, already paid under any provision of this Act;
( b )   any tax deducted or collected at source;
( c )   any relief of tax claimed under section 157;
( d )   any relief of tax or deduction of tax claimed under section 159(1) or 160
on account of tax paid in a country outside India;
( e )   any relief of tax claimed under section 159(2) on account of tax paid in
any specified territory outside India referred to in that section;
49
[ ( f )   any tax credit claimed to be set off as per section 206(2)( e ) to ( h ) and
206(3) and (4); and ]
( g )   any tax or interest payable according to the provisions of section 391(2).
(3) Where the amount paid by the assessee under sub-section (1) falls short of the
aggregate of the tax, interest and fee as payable under the said sub-section, the amount
so paid shall first be adjusted towards the fee payable and thereafter towards the
interest payable and the balance, if any, shall be adjusted towards the tax payable.
(4) For the purposes of sub-section (1), interest payable under section 423 shall be
computed on the tax on the total income as declared in the return as reduced by
the amount of,—
( a )   advance tax, if any, paid;
( b )   any tax deducted or collected at source;
( c )   any relief of tax claimed under section 157;
( d )   any relief of tax or deduction of tax claimed under section 159(1) or 160
on account of tax paid in a country outside India;
( e )   any relief of tax claimed under section 159(2) on account of tax paid in
any specified territory outside India referred to in that section; and
49
[ ( f )   any tax credit claimed to be set off as per the provisions of section 206(2)
( e ) to ( h ) and 206(3) and (4). ]
(5) For the purposes of sub-section (1), interest payable under section 424 shall be
computed on an amount equal to the assessed tax or, as the case may be, on the
amount by which the advance tax paid falls short of the assessed tax.
49.   Substituted by the Finance Act, 2026, w.e.f.   1-4-2026 . Prior to its substitution, clause ( f ) read
as under :
“( f )   any tax credit claimed to be set off as per the provisions of section 206(1)( m ) to ( p )
and 206(2)( e ) to ( h ).”