Section 265 of the Income-tax Act, 2025 — Return by Whom to be Verified

In plain language

What Section 265 actually deals with

Despite the loose working title of "defective/revised return", Section 265 of the Income-tax Act, 2025 is titled "Return by whom to be verified". It lays down who is legally authorised to sign and verify an income-tax return for each category of taxpayer. It does not deal with defective returns — that is Section 263(7) — nor with revised returns, which are covered under Section 263. Section 265 is the direct successor to Section 140 of the old Income-tax Act, 1961, and the rules carry over almost unchanged.

The core idea: a return is not valid unless it is verified by the right person. If the wrong person verifies it, the return can be treated as invalid or defective, exposing you to penalties, loss of refund, and reopening of assessment.

Who must verify — by category of taxpayer

• Individual: the individual himself. If he is absent from India or unable to verify for any other reason, a person holding a valid power of attorney (POA) may verify — and the POA must be attached to the return. If mentally incapacitated, the guardian or any other person competent to act on his behalf verifies.
• Hindu Undivided Family (HUF): the karta. If the karta is absent from India or mentally incapacitated, any other adult member of the family.
• Company: the managing director. Where there is no MD, or he cannot verify, any director or other prescribed person.
• Non-resident company: a POA holder authorised by the company (POA attached to the return).
• Company in liquidation: the liquidator (referred to in Section 322(1)).
• Company managed by government: the principal officer.
• Company under insolvency: the insolvency professional / resolution professional appointed by the Adjudicating Authority under the Insolvency and Bankruptcy Code, 2016.
• Firm: the managing partner; if unavailable, any non-minor partner.
• Limited Liability Partnership (LLP): the designated partner; if none/unavailable, any partner or prescribed person.
• Local authority: the principal officer.
• Political party: the chief executive officer (by whatever name called — secretary, etc.).
• Any other association (AOP/BOI): any member or the principal officer.
• Any other person: that person or someone competent to act on his behalf.

How verification is done in practice

Naming the right person is only half the job — the return must then be verified electronically. Accepted modes continue as before:

• Aadhaar OTP (e-verification, most common for individuals);
• Electronic Verification Code (EVC) via net banking, bank/demat account or bank ATM;
• Digital Signature Certificate (DSC) — mandatory for companies, LLPs and taxpayers subject to audit;
• Physical ITR-V signed and posted to CPC, Bengaluru within 30 days of filing, only where e-verification is not used.

If the return is not verified within the time limit, it is treated as if never filed.

Key conditions and cautions

• Authority must be genuine: an MD, karta, managing partner or designated partner must actually hold that office on the date of verification.
• POA cases: a POA holder can verify only when the taxpayer is absent from India or genuinely unable to; the POA has to be filed with the return.
• Companies/LLPs: DSC of the authorised person is compulsory; using an unauthorised person's DSC makes the return invalid.
• Consequences of wrong verification: the return may be held defective under Section 263(7) or invalid, and any resulting refund or carry-forward of losses can be denied.

How it interacts with related sections

Section 265 works alongside Section 263 (return of income and defective returns), Section 262 (persons required to furnish returns) and the assessment machinery. A properly furnished return under Section 263 is only complete once verified under Section 265; a verification defect can trigger a defective-return notice under Section 263(7).