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CA Intermediate · Taxation · Provisions for filing Return of Income and Self Assessment

Four resident individuals, each below the basic exemption limit even before any deduction and under no other filing obligation, had the following transactions in tax year 2026-27. Who is compulsorily required to furnish a return of income?

Deepa must file a return. Aggregate deposits of ₹1 crore or more in current accounts make filing compulsory even when income is below the exemption limit. Anil's ₹30 lakh savings deposits, Bhavna's ₹80,000 electricity spend and Chetan's ₹1.5 lakh travel spend are each below the respective thresholds.

  1. AAnil deposited ₹30 lakh in a savings bank account
  2. BBhavna paid electricity bills totalling ₹80,000 for the year
  3. CChetan spent ₹1.5 lakh on a foreign trip for himself
  4. DDeepa deposited an aggregate of ₹1.2 crore in a current accountCorrect

Explanation

A person who deposits an aggregate of ₹1 crore or more in one or more current accounts must file a return even if income is below the exemption limit. The other triggers need larger amounts: savings deposits of ₹50 lakh or more, electricity expenditure of ₹1 lakh or more, and foreign travel expenditure of ₹2 lakh or more. Anil, Bhavna and Chetan are all below these thresholds.

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