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CMA Final · Direct Tax Laws and International Taxation · Return of Income

Rohan, a resident and ordinarily resident individual with salary income below the basic exemption limit, held a bank account in Singapore with signing authority at some point during the tax year. Under section 263, which statement is correct?

He must file a return by the due date regardless of income or loss. A resident other than not ordinarily resident who has signing authority in a foreign account at any time during the tax year falls under clause (a)(ix), and clause (b) removes the income-threshold condition.

  1. AHe need not file a return because his income does not exceed the maximum amount not chargeable to tax
  2. BHe must file a return only if the foreign account earned income during the tax year
  3. CHe must file a return on or before the due date regardless of income or lossCorrect
  4. DHe may file a return only if he intends to claim a refund

Explanation

Clause (a)(ix) covers a resident, other than not ordinarily resident, who has signing authority in an account located outside India. Clause (b) says such persons must file on or before the due date regardless of income or loss. The income threshold therefore does not help him.

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