Section 263

Under Section 263 of the Income Tax Act 2025, ITR due dates for Tax Year 2026-27 are: 31 July 2026 for salaried individuals and HUFs not requiring audit (ITR-1 / ITR-2); 31 August 2026 for non-audit business taxpayers (ITR-3 / ITR-4) — this is a NEW extended date under ITA 2025; 31 October 2026 for companies and audit cases; 30 November 2026 for transfer pricing filers. Belated returns can be filed up to 31 December 2026 with a late fee. After that, only the updated return (ITR-U) window remains open for 48 months.

Under Section 263 of the Income Tax Act 2025, non-audit business taxpayers (individuals, HUFs, or firms with business income who are not required to get their accounts audited) now have an extended due date of 31 August — compared to 31 July under ITA 1961. This one-month extension is a significant compliance relief for small business owners and professionals filing ITR-3 or ITR-4 (Sugam). Audit cases continue to file by 31 October.

Under Section 428 of the Income Tax Act 2025 (equivalent to old Section 234F): Late filing fee of ₹5,000 if total income exceeds ₹5 lakh; ₹1,000 if income is ₹5 lakh or less. This fee is MANDATORY and AUTOMATIC — it cannot be waived by the Assessing Officer. In addition to the fee, Section 430 interest of 1% per month applies on any outstanding tax. If you miss the 31 December belated return deadline, you cannot file a normal ITR — only the ITR-U updated return is available, with a 25–70% additional tax surcharge.

If you miss the ITR due date under Section 263 of the Income Tax Act 2025: (1) Late filing fee under Section 428 (₹5,000 or ₹1,000); (2) Interest under Section 430 at 1% per month on outstanding tax; (3) You LOSE the right to carry forward business losses, capital gains losses, and house property losses — these can only be carried forward if ITR is filed by the original due date; (4) For belated return (by 31 December): no carry-forward of losses, but refunds can still be claimed (new under ITA 2025); (5) TDS refunds can still be claimed even in belated returns.

Under Section 263(6) of the Income Tax Act 2025, the Updated Return (ITR-U) allows taxpayers to voluntarily disclose income that was omitted from their original or belated ITR. The ITR-U window has been extended to 48 months (4 years) from the end of the Tax Year — from 24 months under ITA 1961. The additional tax on the extra income is: 25% (if filed within 12 months); 50% (12–24 months); 60% (24–36 months); 70% (36–48 months). Important restrictions: ITR-U CANNOT be used to claim a refund, increase a loss, or reduce income already assessed. It is strictly for disclosing additional income.

Under Sections 327–333 of the Income Tax Act 2025, advance tax is payable in four instalments: 15% by 15 June 2026; 45% (cumulative) by 15 September 2026; 75% (cumulative) by 15 December 2026; 100% by 15 March 2027. Advance tax is required if estimated annual tax (after TDS) exceeds ₹10,000. Senior citizens (60+) without business income are exempt. Presumptive taxpayers (Section 58 — 44AD/44ADA equivalent) need to pay only by 15 March in a single shot. Missing instalments attracts interest under Section 435 at 1% per month.

Yes — under Section 328 of the Income Tax Act 2025, senior citizens aged 60 years or above who do NOT have income from business or profession are completely exempt from paying advance tax. This includes senior citizens with pension income, interest income, rental income, and capital gains. They pay the entire tax liability as self-assessment tax at the time of ITR filing. This exemption does NOT apply to senior citizens who run a business or practice a profession — they must pay advance tax normally.

Under the Income Tax Act 2025: Section 430 (old 234A) — 1% per month on outstanding tax for late filing from due date to filing date; Section 434 (old 234B) — 1% per month if advance tax paid is less than 90% of assessed tax (from 1 April to date of payment); Section 435 (old 234C) — 1% per month per instalment shortfall; Section 437 (old 244A) — 0.5% per month interest ON REFUNDS if refund is delayed beyond the stipulated period. Interest is mandatory and cannot be waived. Even one day into a month is counted as a full month.

Under Section 446 of the Income Tax Act 2025 (consolidating old Sections 270A and 271(1)(c)): For non-wilful under-reporting (honest mistake, omission, or difference in legal interpretation) — penalty is 50% of tax on the under-reported income; For wilful misrepresentation or concealment of income (deliberate hiding) — penalty is 200% of tax on the concealed income. Before imposing any penalty, the AO must issue a show cause notice and give an opportunity of being heard. Taxpayers who have made full, good-faith disclosure in their ITR have complete immunity from penalty.

Yes — under Section 446 of the Income Tax Act 2025, a 200% penalty for misrepresentation can be imposed on any income that was concealed, even if it is being assessed for the first time in a scrutiny or reassessment. The penalty proceedings are separate from the assessment and run in parallel. However, the taxpayer gets a full opportunity to explain — and if the AO is satisfied that the omission was not wilful (e.g., a genuine dispute on deductibility), only 50% penalty may apply. Filing a voluntary disclosure via ITR-U (updated return) before any notice is received is a complete defence against penalty.

Under Section 532 of the Income Tax Act 2025, all income tax scrutiny assessments are conducted under the Faceless Assessment Scheme — meaning no physical/in-person interaction between taxpayer and Assessing Officer. All communication is digital through the e-filing portal (incometax.gov.in). Cases are randomly allocated to AOs across India (not necessarily local), teams review independently, and orders are passed electronically. Section 532 gives this direct statutory authority — it was only administrative under ITA 1961. Similarly, all first appeals to CIT(Appeals) are faceless (Section 356).

Under Section 271 of the Income Tax Act 2025, the scrutiny assessment notice must be issued within 3 months from the end of the Tax Year in which the ITR is filed. The time limit for completing the assessment is generally 18 months from the end of the relevant Tax Year (e.g., for Tax Year 2026-27 ITR filed in July 2026, assessment must be completed by September 2028). For search/survey cases, the limit extends to 2 years. Reassessment for escaped income: 3 years (10 years for escaped income > ₹50 lakh with specific searchable evidence).

Under Chapter XXI of the Income Tax Act 2025: Step 1 — File first appeal to CIT(Appeals) within 30 days of receiving the assessment order. Pay 20% of the disputed tax demand as pre-deposit (compulsory). Submit Form 35 online. Hearing is fully faceless (digital). CIT(A) aims to dispose within 1 year. Step 2 (if CIT(A) order adverse) — Appeal to Income Tax Appellate Tribunal (ITAT) within 60 days. No additional pre-deposit at this stage. ITAT's finding on facts is final. Step 3 (if ITAT order adverse on law) — Appeal to High Court within 120 days only on a 'substantial question of law'. ITAT's factual findings cannot be re-examined.

Under Section 356 of the Income Tax Act 2025, before filing an appeal to CIT(Appeals) against an assessment order or penalty order, the taxpayer must deposit 20% of the disputed tax demand. This 20% pre-deposit is refundable if the appeal is decided in the taxpayer's favour. If the appeal is dismissed, the remaining 80% becomes payable. During the appeal period, the income tax department cannot recover the remaining 80% (appeal stay). This 20% pre-deposit requirement applies at the CIT(A) stage — no further mandatory deposit is required for ITAT.

Section 501 is a brand-new taxpayer protection provision with no equivalent in the Income Tax Act 1961. It requires the income tax department to give PRIOR NOTICE to a taxpayer before conducting a search of premises, arresting the taxpayer, or attaching their bank accounts or property. The notice must specify the nature of action and the grounds. This addresses a longstanding grievance about abrupt enforcement operations. An exception exists for cases where immediate action is necessary to prevent destruction of evidence or flight risk — in such emergencies, the prior notice requirement can be bypassed.

No — under Section 536 of the Income Tax Act 2025, all proceedings initiated under the Income Tax Act 1961 and still pending — including assessments, appeals, penalties, and prosecutions relating to Tax Years 2025-26 and earlier — continue to be governed by ITA 1961 until their final conclusion. The ITA 2025 applies only to Tax Year 2026-27 onwards. Carry-forward losses from years before 2026-27 continue seamlessly under ITA 2025. No limitation period that had expired under ITA 1961 is revived under ITA 2025.

Yes. Returns for Tax Years 2024-25 and 2025-26 are governed by the Income Tax Act 1961 — not ITA 2025. The savings clause in Section 536 ensures all rights and obligations under ITA 1961 continue for those years. You can file updated returns (ITR-U) for 2024-25 and 2025-26 under Section 139(8A) of ITA 1961 within the applicable 24-month window. The CBDT income tax portal (incometax.gov.in) supports both ITA 1961 and ITA 2025 filings simultaneously during the transition period.