Mahesh (Age 50 years) is the CEO of Silver India Ltd. since 01.04.2019. His income in India consists of (i) salary (before standard deduction) of 23…

19. Computation of total income of Mahesh for A.Y. 2024-25 as per section 115BAC Since Mr. Mahesh is a 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 A would be taxable in India. Particulars Amount (₹) Amount (₹) Salaries Salary from Silver Ltd. 23,00,000 Less: Standard deduction u/s 16(ia) 50,000 22,50,000 Income from house property Let out property in Country A Gross Annual Value 2 USD 4,500 Less: Municipal taxes USD 450 Net Annual Value USD 4,050 Less: Deduction under section 24 – 30% of NAV USD 1,215 USD 2,835 [₹ 2,835 x 71, being the last day of previous year i.e., 31.3.2024 as per Rule 115] 2,01,285 Self-occupied property in India Loss from self-occupied property [Interest u/s 24(b) is not allowable in respect of self-occupied property under section 115BAC] - 2,01,285 Profits and gains from business or profession Income from business in Country A [₹ 25,000 x 71, being the last day of previous year i.e., 31.3.2024 as per Rule 115] 17,75,000 Capital Gains Short term capital gains on sale of shares of companies registered in Country A [₹ 5,000 x 70, being the last day of the month immediately preceding the month in which the shares are transferred i.e., 29.2.2024 as per Rule 115] 3,50,000 Income from Other Sources Interest on bank fixed deposits 1,60,000 Dividend from shares held in Country A [₹ 10,000 x 70, being the last day of the month immediately preceding the month in which the dividend is declared i.e., 29.2.2024 as per Rule 115] 7,00,000 8,60,000 Gross Total Income/Total Income 54,36,285 Total Income (Rounded off) 54,36,290 Computation of Net tax liability of Mahesh for A.Y.2024-25 Particulars Amount Upto 3,00,000 Nil 3,00,001 - 6,00,000 [i.e.,3,00,000 @5%] 15,000 6,00,001 - 9,00,000 [i.e.,3,00,000 @10%] 30,000 9,00,001 - 12,00,000 [i.e.,3,00,000 @15%] 45,000 12,00,001 – 15,00,000 [i.e.,3,00,000 @ 20%] 60,000 15,00,001- 54,36,290 [i.e.,39,36,290 @ 30%] 11,80,887 13,30,887 Add: Surcharge@10% [Since total income exceed 50lakhs but does not exceed 1crore) 1,33,089 14,63,976 Add: Health & Education Cess@4% 58,559 15,22,535 Less: Foreign tax credit, being lower of - Tax payable in India @28.007% on 30,26,285, being income from house property of 2,01,285, business income of 17,75,000 plus capital gains of 3,50,000 plus dividend income of 7,00,000 [i.e.,15,22,535/54,36,290 x 100] = 28.007% 8,47,572 Tax paid in Country A@20% [₹ 44,500 @20% x 72, being the rate on 30.4.2024, being the last day of the month immediately preceding the month in which tax is paid, i.e., May 2024] 6,40,800 6,40,800 Net tax liability 8,81,735 Net tax liability (Rounded off) 8,81,740