Mr. Amit, aged 45 years, a resident Indian has provided you the following information for the previous year ended 31.03.2024 (i) He received royalty…

Computation of total income of Mr. Amit for A.Y. 2024-25 Particulars Particulars ₹ I Income from house property Let out portion [First floor] Gross Annual Value [Rent received is taken as GAV, in the absence of other information] 2,28,000 Less: Municipal taxes paid by him in the P.Y. 2023-24 pertaining to let out portion [₹ 60,000/2] 30,000 Net Annual Value (NAV) 1,98,000 Less: Deduction u/s 24 (a) 30% of 1,98,000 59,400 1,38,600 Self-occupied portion [Ground Floor] Annual Value Nil [No deduction is allowable in respect of municipal taxes paid] 1,38,600 II Profits and gains of business or profession Income from SEZ unit 20,00,000 III Capital Gains On transfer of 60,000 shares (2,00,000 x 30%) Sales consideration [60,000 x 60 per share] 36,00,000 Less: Cost of acquisition, higher of - 30,00,000 - Actual cost [60,000 X 40 per share] 24,00,000 - Lower of FMV on 31.1.2018 [60,000 x 50] 30,00,000 Actual sales consideration [60,000 x 60] 36,00,000 Long-term capital gains u/s 112A (since shares are held for a period of more than 12 months before transfer) 6,00,000 IV Income from Other Sources Royalty from artistic book 2,88,000 Less: Expenses incurred for earning royalty 40,000 2,48,000 Interest on savings bank deposits 30,000 2,78,000 Gross Total Income 30,16,600 Less: Deduction u/s 10AA [Not available, since he commenced operation in P.Y. 2021-22] - Less: Deduction under Chapter VI-A Deduction under section 80C Tuition fee paid for maximum of two children is allowable (₹ 14,000 x 2) 28,000 Insurance premium paid on life insurance policy of son allowable, even though not dependent on Mr. Amit 39,000 Insurance premium paid on life insurance policy of father not allowable, even though father is dependent on Mr. Amit - 67,000 Deduction under section 80QQB Royalty [2,88,000 x 15/18 = 2,40,000, restricted to amount brought into India in convertible foreign exchange - 2,30,000 minus - 40,000 expenses already allowed as deduction while computing royalty income] 1,90,000 Deduction under section 80TTA Interest on savings bank account, restricted to 10,000 10,000 2,67,000 Total Income 27,49,600 Computation of tax liability of Mr. Amit for A.Y.2024-25 under the normal provisions of the Act Particulars Particulars ₹ Tax on total income of 27,49,600 Tax on LTCG of 5,00,000, being the sum exceeding 1 lakh @10% 50,000 Tax on remaining total income of 21,49,600 Upto 2,50,000 Nil 2,50,001 - 5,00,000 [@5% of 2.50 lakh] 12,500 5,00,001 - 10,00,000 [@20% of 5,00,000] 1,00,000 10,00,001 - 21,49,600 [@30% of 11,49,600] 3,44,880 4,57,380 5,07,380 Add: Health and education cess@4% 20,295 Total tax liability 5,27,675 Tax liability (rounded off) 5,27,680 Computation of adjusted total income and AMT of Mr. Amit for A.Y. 2024-25 Particulars ₹ Computation of adjusted total income Total income as per the normal provisions of the Act 27,49,600 Add: Deduction u/s 80QQB 1,90,000 Adjusted Total Income 29,39,600 Alternative Minimum [email protected]% 5,43,826 Add: Health and education cess@4% 21,753 AMT liability 5,65,579 AMT liability (rounded off) 5,65,580 Since the regular income-tax payable is less than the alternate minimum tax payable, the adjusted total income shall be deemed to be the total income and tax is leviable @18.5% thereof plus cess@4%. Therefore, liability as per section 115JC is 5,65,580.