Ms. Kanika Tondon is a popular Indian pop singer. She has business interest in Country X and Y as well. She is a resident in India for the A.Y.…

Computation of net tax liability of Ms. Kanika Tondon for A.Y.2025-26 Particulars Particulars ₹ I Income from house property Income from house property in India 4,30,00,000 Less: Loss from house property in Country X 1,30,00,000 3,00,00,000 II Profits and gains of business or profession Business/ Professional income in India 14,50,00,000 - From singing profession 9,00,00,000 - From being the owner of cricket team Delhi Super Players 5,50,00,000 Business/ Professional income in Country X - Other business 7,20,00,000 - Share income from firm 4,80,00,000 12,00,00,000 Business/Professional income in Country Y - Singing profession 2,00,00,000 - Other business 2,90,00,000 4,90,00,000 31,40,00,000 III Income from Other Sources Agricultural income from India [Exempt u/s 10(1)] - Agricultural income from Country Y 1,20,00,000 1,20,00,000 Gross Total Income 35,60,00,000 Less: Deductions under Chapter VI-A [Not allowable since Ms. Kanika is paying tax under default tax regime] Nil Total Income 35,60,00,000 Computation of tax liability: Step 1: Tax on 37,10,00,000, being non-agricultural income and agricultural income [30% x 36,95,00,000 +1,40,000] 11,09,90,000 Step 2: Tax on 1,53,00,000, being agricultural income and basic exemption limit of 3,00,000 [30% x 1,38,00,000 +1,40,000] 42,80,000 Step 3: Step 1 - Step 2 10,67,10,000 Add: Surcharge@25% (since her total income exceeds 2crore) 2,66,77,500 13,33,87,500 Add: HEC @4% 53,35,500 Tax liability 13,87,23,000 Less: Deduction under section 91 [See Working Notes 1 & 2 below] 4,30,29,870 Net Tax liability (rounded off) 9,56,93,130 Working Note 1: Computation of deduction under section 91 Particulars ₹ ₹ Average rate of tax in India [13,87,23,000 x 100/35,60,00,000] 38.967% Average rate of tax in Country X [2,16,00,000 x 100/12,00,00,000] 18% Average rate of tax in Country Y [2,44,00,000 x 100/6,10,00,000] 40% I Deduction under section 91 in respect of doubly taxed income in India and Country X Doubly taxed income: Country X (i.e.,7.2 crores, being business income (+) ₹ 4.8 crores, being taxable share income from firm (-) ₹ 1.3 crores, loss from house property) 10,70,00,000 Lower of Indian rate of tax of 38.967% and rate of tax in Country X of 18% 18% Deduction u/s 91 = 18% x 10.70 crores 1,92,60,000 II Deduction under section 91 in respect of doubly taxed income in India and Country Y Doubly taxed income: Country Y (i.e.,2 crores, being professional income (+) ₹ 2.9 crores, being business income (+) ₹ 1.2 crores, being taxable agricultural income) 6,10,00,000 Lower of Indian rate of tax of 38.967% and rate of tax in Country X of 40% 38.967% Deduction u/s 91 = 38.967% x 6.10 crores 2,37,69,870 Deduction under section 91 4,30,29,870