CMA Final · Direct Tax Laws and International Taxation · Return of Income
Ravi Menon, a resident and ordinarily resident individual, earns only salary of Rs 6,00,000, with no loss to carry forward. During the tax year he held a bank account in Singapore on which he had signing authority. Which statement is correct under section 263?
He must file a return irrespective of his income. A resident, other than not ordinarily resident, with signing authority in an account outside India falls in clause (a)(ix), and clause (b) requires filing regardless of income or loss, with no balance threshold.
- AHe need not file a return because his income comes only from salary and tax was deducted at source
- BHe must file a return only if his total income exceeds the maximum amount not chargeable to tax
- CHe must file a return regardless of the amount of his income, since he has signing authority in an account located outside IndiaCorrect
- DHe must file a return only if the foreign account balance exceeds a prescribed limit
Explanation
Section 263(1)(a)(ix) covers a resident other than not ordinarily resident who holds an asset located outside India or has signing authority in a foreign account. Clause (b) requires such a person to file regardless of income or loss. The text states no balance condition.
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