Mr. Dhruv, an Indian citizen aged 32 years, a Central Government officer serving in the Ministry of Corporate Affairs, left India for the first time…

Mr. Dhruv is a non-resident for the A.Y. 2026-27, since he was not present in India at any time during the previous year 2025-26. 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 deemed to accrue or arise in India. Computation of total income of Mr. Dhruv, a non-resident, for the A.Y. 2026-27 Particulars ₹ Salaries received for services rendered in London (computed) [Taxable, since the income from 'Salaries' payable by the Government to a citizen of India for services rendered outside India is deemed to accrue or arise in India as per section 9(1)(iii)] 20,00,000 Foreign allowances [Allowances or perquisites paid or allowed as such outside India by the Government to a citizen of India for rendering service outside India is exempt under section 10(7)] - Interest on saving bank deposit in State Bank of India [Since interest income is from a source (i.e., bank deposit) in India, it is deemed to accrue or arise in India] 1,00,000 Short term capital gains on sale of shares of an Indian company received in London [Since income arises from transfer of a capital asset situated in India, it is taxable in the hands of a non-resident] 2,00,000 Dividend from PP Ltd., an Indian company, paid in London [Since the dividend paid by an Indian company outside India is deemed to accrue or arise in India, it is taxable in the hands of non-resident] 50,000 Rent from property in London deposited in a bank in London, later on remitted to India through approved banking channels [Not taxable, since neither the property is situated in India nor rent is received in India] - Gross Total Income 23,50,000 Less: Deduction under section 80TTA Interest on saving bank account subject to a maximum of 10,000 10,000 Total Income 23,40,000