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

Meera, a resident individual aged 35, earned a total income of Rs 2,60,000 in tax year 2026-27, which is below the basic exemption limit under either tax regime. During the year she paid electricity bills of Rs 1,40,000 for her house. None of her other circumstances (deposits, foreign travel, TDS, business turnover) trigger any filing condition. Which statement is correct?

Meera must file a return. Although her income is below the basic exemption limit, the law separately requires a return from any person whose electricity expenditure in the year exceeds Rs 1,00,000. She spent Rs 1,40,000, so the expenditure condition applies independently of her income level or tax liability.

  1. AShe need not file a return because her total income is below the basic exemption limit
  2. BShe must file a return because her electricity expenditure exceeded Rs 1,00,000 in the yearCorrect
  3. CShe must file a return only if her electricity expenditure exceeds Rs 5,00,000
  4. DShe must file a return only if tax is actually payable after TDS

Explanation

Apart from the income test, a person who incurs aggregate electricity expenditure above Rs 1,00,000 in the year must file a return even if total income is below the exemption limit. Meera spent Rs 1,40,000, so the filing obligation arises. The first option is wrong because it applies only the income test and ignores the expenditure-based trigger.

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