Income-tax Act, 1961Section 263
- PCIT/CIT can revise orders that are erroneous and prejudicial to revenue
- Within 2 years from end of FY of the order
- Revision in favour of assessee: section 264
Applies to FY 2025-26 (AY 2026-27) and earlier years.
IT Act 1961 → 2025 / Section 263
Returns & assessmentSection 263 → Section 377
Revision of assessment orders prejudicial to the revenue
Section 263 of the old Income-tax Act, 1961 · new section 377 under the Income-tax Act, 2025
New reference Section 377 (264 → 378)
Income-tax Act, 2025Section 377 (264 → 378)
- Competent Authority can revise erroneous and prejudicial orders (section 377)
- Covers AO and TPO orders
- 2-year time limit retained
- Revision on assessee's application: section 378
Applies from tax year 2026-27 (from 1 April 2026).
What changed
Renumbered; scope and time limit unchanged.
Practice notes
- Do not confuse with section 263 of the 2025 Act, which is the return of income (old 139).
Frequently asked
What is section 263 revision called in the new Income Tax Act 2025?
Section 377. Note that section 263 of the 2025 Act is the return of income provision.
What is section 263 called in the new Income-tax Act, 2025?
Section 263 of the Income-tax Act, 1961 corresponds to Section 377 (264 → 378) of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).
What changed in section 263 under the new Income Tax Act?
Renumbered; scope and time limit unchanged.
Is section 263 still applicable for FY 2025-26?
Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 263 of the 1961 Act. Section 377 (264 → 378) of the 2025 Act applies from tax year 2026-27.