Question

In the " One by Six" rule of Income Tax, it is mandatory to file Income Tax Returns if you posses

• A. television
• B. gold
• C. credit card
• D. passport

Answer 1

The Correct Option is C

Step 1: Understand the question
The question refers to the old "One by Six" rule under Indian Income Tax laws, which laid down certain conditions under which an individual was required to file an income tax return, even if their taxable income was below the exemption limit.

Step 2: Background of the 'One by Six' rule
- The "One by Six" scheme was introduced by the Income Tax Department in the late 1990s.
- According to this rule, if a person satisfied any one out of six prescribed conditions, they were mandatorily required to file an Income Tax Return.
- These six conditions were related to possession of certain assets or incurring certain expenditures which reflected a certain financial status.

Step 3: Six conditions included
The six conditions were broadly as follows:
1. Ownership of a motor vehicle.
2. Occupation of a house property in own name.
3. Having a telephone connection.
4. Foreign travel undertaken by the assessee.
5. Holding a credit card (not being an "add-on" card).
6. Membership of a club where entrance fee was above a specified limit.

Step 4: Application to the given question
Out of these six, the specific condition mentioned in the question is possession of a **credit card**.
This meant that if a person had a credit card, they were required to file their Income Tax Return under this rule, regardless of their income level.

Step 5: Conclusion
Therefore, under the "One by Six" rule, possession of a credit card was indeed a mandatory criterion to file Income Tax Returns.

Final Answer: The correct option is (C): credit card.