Skip to content

CMA Intermediate · Direct and Indirect Taxation · Basic Concepts, Basis of Charge and Capital and Revenue Receipts

A non-resident's total income in the tax year consists only of interest on bonds covered by section 209(1) (Table: Sl. No. 1), and tax has been deducted at source under Chapter XIX-B on that interest. Which statement follows from section 209(4)?

He need not furnish a return under section 263(1). Section 209(4) relieves a non-resident whose total income consists only of Sl. No. 1 or 2 income, such as bond interest, provided tax deductible at source under Chapter XIX-B has been deducted.

  1. AHe need not furnish a return of income under section 263(1)Correct
  2. BHe must furnish a return only if the interest exceeds ₹4,00,000
  3. CHe must furnish a return because deductions are disallowed
  4. DHe need not furnish a return only if no tax was deducted

Explanation

Section 209(4) exempts a non-resident from filing a return under section 263(1) if total income consists only of income at Sl. Nos. 1 and 2 of the Table and tax deductible at source has been deducted. Both conditions are met here. The Act sets no monetary threshold, and disallowed deductions are irrelevant to the filing exemption.

Did you get it right without looking?

One question tells you little. A timed set on Basic Concepts, Basis of Charge and Capital and Revenue Receipts shows your real accuracy, how long you take and where you lose marks.

Practise Basic Concepts, Basis of Charge and Capital and Revenue ReceiptsFree diagnostic mock

More Basic Concepts, Basis of Charge and Capital and Revenue Receipts questions