Ms. Priya, a person of Indian origin and a citizen of Canada, got married to Mr. Aaron, an Indian citizen residing in Canada, on 24th January 2024.…

Ms. Priya is a person of Indian origin who has come on a visit to India during the previous year 2024-25. Her total income other than income from foreign sources for the A.Y. 2025-26 is as below: Computation of total income other than income from foreign sources of Priya for the A.Y. 2025-26 Particulars ₹ Income from other sources Cash gifts received from non-relatives is chargeable to tax as per section 56(2)(x) if the aggregate value of such gifts exceeds - 50,000. -1,51,000 received from parents of husband would be exempt, since husband's parents fall within the definition of 'relatives' and gifts from a relative are not chargeable to tax. Nil -21,000 received from sister-in-law is exempt, since sister of husband falls within the definition of relative and gifts from a relative are not chargeable to tax. Nil - Gift received from close friends of her husband of 16,00,000 is taxable under section 56(2)(x) since the amount of cash gifts exceeds - 50,000. 16,00,000 Total Income other than income from foreign sources 16,00,000 Since her total income other than income from foreign sources exceed - 15,00,000, she would be considered a resident of India if she stays in India during the P.Y. 2024-25 for 120 days or more and for 365 days or more during the 4 years immediately preceding the relevant previous year. Her stay in India during the previous year 2024-25 is as under: P.Y. 2024-25 01.04.2024 to 10.07.2024 - 101 days 24.02.2025 to 25.03.2025 - 30 days Total 131 days Since she stayed in India for 131 days during the P.Y. 2024-25 and for 400 days during the 4 years immediately preceding the P.Y. 2024-25, she would be a resident but not ordinarily resident in India for the P.Y. 2024-25. In such case, her total income would be 16lakhs and tax liability would be computed in the following manner: Computation of tax liability of Priya for the A.Y. 2025-26 under default tax regime under section 115BAC Particulars ₹ Tax on total income of 16,00,000 Upto 3,00,000 Nil 3,00,001 - 7,00,000 @5% 20,000 7,00,001 - 10,00,000 @10% 30,000 10,00,001 - 12,00,000 @15% 30,000 12,00,001 -15,00,000 @20% 60,000 15,00,001 - 16,00,000 @ 30% 30,000 1,70,000 Add: Health and Education cess@4% 6,800 Tax liability 1,76,800