Mr. Mani Prasad, aged 71 years furnished the following information in respect of income earned by him for the previous year ended 31-03-2024:…

Since Mr. Mani Prasad is resident in India for the P.Y.2023-24, his global income would be subject to tax in India. Therefore, income earned by him in Country M and Country N would be taxable in India. He would, however, be entitled to deduction under section 91, since India does not have a DTAA with Country M and Country N, and all conditions under section 91 are satisfied. Computation of total income of Mr. Mani Prasad for A.Y.2024-25 Particulars Particulars ₹ Income under the head "Salaries" Pension from State Government 4,80,000 Less: Standard deduction u/s 16(ia) [Allowable as per section 115BAC] 50,000 4,30,000 Income from House Property Rental income from property in Country N 2 3,20,000 Less: Municipal taxes 21,000 2,99,000 Less: Deduction u/s 24(a)@30% 89,700 2,09,300 Profits and Gains of Business or Profession Speculative income in India 1,56,000 Less: Set-off of business loss from proprietary business in Country N under section 70 1,16,000 40,000 Capital Gains Short-term capital gains on sale of plot in India 3,20,000 Income from Other Sources Agricultural income from Country M [not exempt u/s 10(1), since it is earned from land situated outside India] 86,000 Dividend from a company in Country M 68,000 1,54,000 Gross Total Income 11,53,300 Less: Deduction under Chapter VI-A [No deduction allowable as per section 115BAC] - - Total Income 11,53,300 2 In the absence of any information relating to fair rent, municipal value and standard rent, rental income is assumed to be the gross annual value. Computation of net tax liability of Mr. Mani Prasad for A.Y.2024-25 Particulars ₹ Tax on 11,53,300 Upto 3,00,000 Nil 3,00,001 to 6,00,000 @5% 15,000 6,00,001 to 9,00,000 @10% 30,000 9,00,001 to 11,53,300 @15% 37,995 82,995 Add: Health and education cess@4% 3,320 86,315 Less: Rebate under section 91 (See Working Note below) 11,101 Net tax liability 75,214 Net tax liability (Rounded off) 75,210 Calculation of Rebate under section 91: ₹ Average rate of tax in India [i.e.,86,315/11,53,300 x 100] = 7.484% Doubly taxed income pertaining to Country M Agricultural income 86,000 Dividend from a company in Country M [Not includible, since exempt in Country M] - 86,000 Rebate under section 91 on 86,000 @7.484% [being the lower of average Indian tax rate (7.484%) and Country M tax rate (10%)] 6,436 Doubly taxed income pertaining to Country N Income from house property less business loss set-off against income chargeable to tax in India (₹ 2,09,300 - 1,16,000) 93,300 Rebate under section 91 on 93,300 @5% [being the lower of average Indian tax rate (7.484%) and Country N tax rate (5%)] 4,665 Total rebate under section 91 (Country M + Country N) 11,101