Mr. Pradhyuman, aged 48 years, a resident individual has furnished the following details of income earned during the previous year 2024-25: India…

Computation of total income and tax liability of Mr. Pradhyuman for A.Y. 2025-26 Particulars Particulars ₹ Income from house property Gross annual value 1 of house property in Country M [CMD 52,000 x 70/CMD] 36,40,000 Less: Municipal taxes [CMD 6,000 x 70/CMD] 4,20,000 Net Annual value 32,20,000 Less: Deduction @30% 9,66,000 22,54,000 Profits and gains from business and profession Income from sole proprietary concern in India 80,00,000 Share of profit from a partnership firm in India of 20lakhs, is exempt under section 10(2A) Nil Business profit 80,00,000 Less: Business Loss 2 in Country G (CGD 5200 x 70/CGD) 3,64,000 76,36,000 Income from Other Sources Agricultural income from tea gardens in Country G, is taxable in India (CGD 40000 x 70/CGD) 28,00,000 Dividend income from Country M (CMD 30000 x 70/CGD) 21,00,000 49,00,000 Gross Total Income 1,47,90,000 Less: Deductions under Chapter VI-A Under section 80C [deposit in PPF] 1,50,000 Under section 80D [Medi-claim premium paid - 28,000, restricted to 25,000] 25,000 1,75,000 Total Income 1,46,15,000 Tax on total income Tax on 1,46,15,000 [(30% x 1,36,15,000) plus - 1,12,500] 41,97,000 Add: Surcharge@15%, since total income exceeds 1crore but does not exceed 2crore 6,29,550 48,26,550 Add: HEC@4% 1,93,062 50,19,612 Average rate of tax in India [i.e.,50,19,612/1,46,15,000 x 100] 34.3456% Rebate u/s 91 in respect of income in Country G Average rate of tax in Country G 20% Doubly taxed income [₹ 28,00,000 - 3,64,000] 24,36,000 Rebate under section 91 on 24,36,000 @20% (lower of average Indian tax rate and rate of tax in Country G) 4,87,200 Rebate u/s 91 in respect of income in Country M Average rate of tax in Country M [CMD 3,000 (30,000 x 10%) + CMD 7800 (52,000 x 15%)/ CMD 82,000] x 100 13.1707% Doubly taxed income [₹ 22,54,000 +21,00,000] 43,54,000 Rebate under section 91 on 43,54,000 @13.1707% (lower of average Indian tax rate and rate of tax in Country G) 5,73,452 Tax liability in India 39,58,960 1 In absence of any information regarding fair rent and standard rent, actual rent is considered as gross annual value. 2 Since the eight year has not expired from the assessment year in which such business loss was incurred, such business loss can be set-off against current year business income.