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CMA Intermediate · Direct and Indirect Taxation · Filing of Return of Income

Meera, a resident individual (other than not ordinarily resident), has total income of Rs 2,10,000 for the tax year. She has no business or capital loss. During the year she held a bank account in Singapore in which she has signing authority. Which statement follows from section 263?

Meera must file a return, because a resident other than not ordinarily resident with signing authority in an account outside India is covered by section 263(1)(a)(ix), and such persons must file regardless of income or loss. Whether the account earned income is irrelevant.

  1. AShe need not file because her income is below the maximum amount not chargeable to tax
  2. BShe must file a return only if the Singapore account earned income
  3. CShe must file a return regardless of her income because she has signing authority in an account located outside IndiaCorrect
  4. DShe must file a return only if her income exceeds the exemption limit after claiming Chapter VIII deductions

Explanation

Section 263(1)(a)(ix) covers a resident, other than not ordinarily resident, who has signing authority in any account located outside India. Section 263(1)(b) says such persons file regardless of income or loss. Income from the account is not a condition.

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