Compute the total income and net tax liability after providing relief under section 91 by Mr. Gaurav aged 73 years for A.Y. 2024-25 from the…

Since Mr. Gaurav is an individual 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. Gaurav for A.Y. 2024-25 Particulars Particulars ₹ Income under the head "Salaries" Pension from State Government 3,90,000 Less: Standard deduction u/s 16(ia) 50,000 3,40,000 Income from House Property Rental income from property in Country N⁴ 3,00,000 Less: Municipal taxes 20,000 2,80,000 Less: Deduction u/s 24(a)@30% 84,000 1,96,000 Profits and Gains of Business or Profession Speculative income in India 1,16,000 Less: Set-off of business loss from proprietary business in Country N under section 70 1,06,000 10,000 Short-term capital gains on sale of plot in India 2,10,000 Income from Other Sources Agricultural income from Country M [not exempt u/s 10(1), since it is earned from land situated outside India] 90,000 Dividend from a company in Country M 64,000 1,54,000 Gross Total Income 9,10,000 Less: Deduction under Chapter VI-A [No deduction allowable as per section 115BAC] - Total Income 9,10,000 ⁴ 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. Gaurav for A.Y.2024-25 Particulars ₹ Tax payable on 9,10,000 Upto 3,00,000 Nil 3,00,000 to 6,00,000 @ 5% 15,000 6,00,000 to 9,00,000 @ 10% 30,000 9,00,000 to 9,10,000 @15% 1,500 46,500 Add: Health and education cess@4% 1,860 48,360 Less: Rebate under section 91 (See Working Note below) 9,283 Tax Payable 39,077 Tax Payable (rounded off) 39,080 Calculation of Rebate under section 91: ₹ Average rate of tax in India [i.e.,48,360/9,10,000 x 100] = 5.314% Doubly taxed income pertaining to Country M Agricultural income 90,000 Dividend from a company in Country M [Not includible, since exempt in Country M] - 90,000 Rebate under section 91 on 90,000 @5.314% [being the lower of average Indian tax rate (5.314%) and Country M tax rate (10%)] 4,783 Doubly taxed income pertaining to Country N Income from house property less business loss set-off against income chargeable to tax in India (₹ 1,96,000 - 1,06,000) 90,000 Rebate under section 91 on 90,000 @5% [being the lower of average Indian tax rate (5.314%) and Country N tax rate (5%)] 4,500 Total rebate under section 91 (Country M + Country N) 9,283