Mr. Varun, an Indian citizen, engaged in consultancy business in India. He shifted to Dubai in the year 2019 to expand his consultancy business…

CA Intermediate · Taxation · RTP · September 2025
Mr. Varun, an Indian citizen, engaged in consultancy business in India. He shifted to Dubai in the year 2019 to expand his consultancy business overseas. He visits India every year to supervise his office in Delhi. His stay in India for current as well as past years is as follows: P.Y. 2020-21: 95 daysP.Y. 2021-22: 105 daysP.Y. 2022-23: 95 daysP.Y. 2023-24: 75 daysP.Y. 2024-25: 100 days During the P.Y. 2024-25, he earned the following income: Income from consultancy business in India - 10,00,000Income from consultancy business in Dubai -4,00,000Agricultural income from land situated in Kerala -70,000Dividend from an Indian company, received in Dubai -50,000Interest expenditure on investment in above shares -15,000 You are required to: (b) Compute the Total income of Mr. Varun for P.Y. 2024-25 if he opts out of the default tax regime.

Suggested Answer and Working Notes:

Computation of total income of Mr. Varun, a non-resident, for A.Y. 2025-26 Particulars Particulars ₹ Income from consultancy business in India [Taxable as income accrued or arisen in India] 10,00,000 Income from consultancy business in Dubai [Not taxable since neither income accrued or arisen in India nor received in India] - Agricultural income from land in Kerela [Exempt u/s 10(1)] - Dividend from Indian company 50,000 Less: Deduction for interest expenses upto 20% 10,000 40,000 10,40,000

Topics: Paper 3A: Income Tax Laws, Paper 3B: Goods and Services Tax

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