Following are the particulars of income earned by Mr. Kumar Saurav, a resident Indian aged 56 years in India and from Country P for the assessment…

Computation of total income and net tax liability of Mr. Kumar Saurav for A.Y.2024-25 under the default tax regime Particulars ₹ Income from house property Gross Annual Value 4 of property in Country 'P' 1,92,000 Less: Municipal taxes paid in Country 'P' 9,500 Net Annual Value 1,82,500 Less: Deduction under section 24 – 30% of NAV 54,750 1,27,750 Profits and Gains of Business or Profession Income from profession in India 10,75,000 Royalty income from literary book from Country 'P' (after deducting expenses of 35,000) 4,15,000 14,90,000 Income from Other Sources Interest on Fixed deposit with XYZ Bank 95,000 Interest on savings bank account 47,000 Agriculture income in Country 'P' 65,000 Dividend from a company incorporated in Country 'P' 1,59,000 3,66,000 Gross Total Income 19,83,750 Less: Deductions under Chapter VI-A [Not available under default tax regime] Nil Total Income 19,83,750 Tax liability on 19,83,750 Tax on total income [30% of 4,83,750 +1,50,000] 2,95,125 Add: Health and Education cess@4% 11,805 3,06,930 Less: Deduction u/s 91 (See Working Note below) 1,18,632 Net Tax Liability 1,88,298 Net Tax Liability (Rounded off) 1,88,300 Working Note: Calculation of deduction under section 91 Particulars ₹ Doubly Taxed Income – Country P Income from house property 1,27,750 Royalty Income [₹ 4,50,000 - 35,000 (Expenses)] 4,15,000 Agricultural income 65,000 Dividend 1,59,000 7,66,750 Rate of tax in Country P = 16% Indian rate of tax = 3,06,930/19,83,750 x 100 = 15.472% Lower of the above = 15.472% Deduction u/s 91 [15.472% x 7,66,750] 1,18,632 4 Rental income has been taken as GAV in the absence of other information relating to fair rent, municipal value etc.