Mr. Shankar, aged 44 years, is an Indian citizen. He graduated from ABC University, UAE and was employed in Nomad Skills LLC, UAE since April 2016.…

Determination of residential status of Mr. Shankar and computation of total income under default tax regime for the A.Y. 2026-27 Mr. Shanker is an Indian citizen who stayed in India during the P.Y. 2025-26 for 111 days and never visited India since April, 2016. Since he is not a resident by virtue of section 6(1) and he is not liable to tax in UAE, he will be a deemed resident under section 6(1A) if his total income, other than the income from foreign sources exceeds 15lakhs during the previous year. Computation of total income, other than the income from foreign sources Particulars ₹ Income from "Salaries" Salary from Nomad Skills LLC (Not Taxable in India since it accrues or arise outside India) Nil Gross Salary from Shakin Pro Limited 8,50,000 Less: Standard Deduction 75,000 7,75,000 Capital Gains Transfer of shares of X Ltd. [300 shares] Sales Consideration [300 x 3200] 9,60,000 Less: Cost of acquisition, being higher of - 5,40,000 Cost of acquisition [1400 x 300] 4,20,000 Lower of - FMV as on 31.1.2018 [1800 x 300] 5,40,000 - Sale consideration [3200 x 300] 9,60,000 4,20,000 Transfer of Shares of Y Ltd. Sales Consideration [250 x 3300] 8,25,000 Less: Cost of acquisition [2300 x 250] 5,75,000 2,50,000 Income from Other Sources Winning from online games 70,000 Note: (Alternate answer) – Since the word "received" is used with winning from online games, it is possible to take a view that such amount is net of TDS on which tax is deductible u/s 194BA @30%. If such view is taken, then the amount of winning from online games would be grossed up to 1,00,000 (₹ 70,000 x 100/70) and total income would be - 15,45,000. Total income (excluding income from foreign sources) 15,15,000 Since Mr. Shankar has total income excluding income from foreign sources exceeding 15lakhs, he is a deemed resident and resident but not ordinarily resident in India by default. His total income would be - 15,15,000 as computed above.