Determine the residential status and total income of Mr. Arvind under optional tax regime for the A.Y.2025-26 based on the following details: Mr.…

Determination of residential status Mr. Arvind would be a resident in India during the P.Y. 2024-25, if he satisfies any one of the following conditions: He has been in India during the P.Y. 2024-25 for a total period of 182 days or more, orHe has been in India during the 4 years immediately preceding the P.Y. 2024-25 for a total period of 365 days or more and has been in India for at least 60 days in the P.Y. 2024-25. If he satisfies any one of the conditions mentioned above, he is a resident. If both the above conditions are not satisfied, he would be a non-resident. During the P.Y. 2024-25 Mr. Arvind stayed in India for 179 days i.e., 365 days – 186 days [78 days + 34 days + 74 days] and 380 days i.e., more than 365 days during the 4 years preceding P.Y. 2024-25. He satisfies the second basic condition for being a resident. Hence, he is a resident in India for A.Y.2025-26. A person would be “Not ordinarily Resident" in India in any previous year, if such person, inter alia: has been a non-resident in 9 out of 10 previous years preceding the P.Y. 2024-25; orhas during the 7 previous years immediately preceding the P.Y. 2024-25 been in India for 729 days or less. For the previous year 2024-25, Mr. Arvind would be “Resident but not ordinarily resident" since he stayed for less than 729 days during the 7 previous years immediately preceding P.Y. 2024-25. Computation of total income of Mr. Arvind for A.Y.2025-26 under optional tax regime Particulars Amount (₹) (1) Salary received in a bank account in India 15,00,000 Less: Standard deduction u/s 16(ia) 50,000 14,50,000 (2) Dividend of 48,000 received from Singapore based company deposited to his bank account in Singapore is not taxable in the hands of the resident but not ordinarily resident since the income has neither accrued or arisen in India nor has it been received in India. Nil (3) Interest credited to his savings bank account in PNB is taxable in the hands of Mr. Arvind as Income from other sources, since it has accrued and arisen in India and is also received in India. 10,500 Gross Total Income 14,60,500 Less: Deduction u/s 80TTB 10,500 Total Income 14,50,000