Mr. Sudesh (aged 58 years), a citizen of India, serving in the Ministry of Finance in India, was transferred to Indian Embassy in UK on 15 th March…

Computation of Total Income of Mr. Sudesh for A.Y. 2024-25 Mr. Sudesh is a non-resident for the A.Y.2024-25, since he was not present in India at any time during the previous year 2023-24. As per section 5(2), a non-resident is chargeable to tax in India only in respect of following incomes: (i) Income received or deemed to be received in India; and (ii) Income accruing or arising or income deemed to accrue or arise in India. Particulars ₹ Salaries Salary from Government of India (Income chargeable under the head ‘Salaries' payable by the Government to a citizen of India for services rendered outside India is deemed to accrue or arise in India under section 9(1)(iii). Hence, such income is taxable in the hands of Mr. Sudesh, a citizen of India, even though he is a non-resident and rendering services outside India) 9,25,000 Foreign Allowance from Government of India [Any allowances or perquisites paid or allowed as such outside India by India by the Government to a citizen of India for rendering service outside India is exempt under section 10(7)]. Nil Gross Salary 9,25,000 Less: Standard Deduction under section 16(ia) of 50,000, being lower of gross salary or - 50,000 50,000 8,75,000 Income from House Property Rent from a house situated at UK, received in UK (Income from property situated outside India would not be taxable in India in the hands of a non-resident, since it neither accrues or arises in India nor is it deemed to accrue or arise in India nor is it received in India) Nil Gross Total Income/ Total Income 8,75,000