Calculate the total income and net tax liability of Mr. Arvind, aged 72 years, for A.Y. 2025-26, after granting relief under section 91, based on…

Since Mr. Arvind is an individual resident in India for the P.Y.2024-25, his global income would be subject to tax in India. Therefore, income earned by him in Country X and Country Y would be taxable in India. He would, however, be entitled to deduction under section 91, since India does not have a DTAA with Country X and Country Y, and all conditions under section 91 are satisfied. Computation of total income of Mr. Arvind for A.Y. 2025-26 under default tax regime Particulars Particulars ₹ Income under the head "Salaries" Pension from State Government 4,10,000 Less: Standard deduction u/s 16(ia) 75,000 3,35,000 Income from House Property Rental income from property in Country Y 4 3,40,000 Less: Municipal taxes 25,000 3,15,000 Less: Deduction u/s 24(a)@30% 94,500 2,20,500 Profits and Gains of Business or Profession Speculative income in India 1,25,000 Less: Set-off of business loss from proprietary business in Country Y under section 70 1,20,000 5,000 Short-term capital gains on sale of plot in India 2,40,000 Income from Other Sources Agricultural income from Country X [not exempt u/s 10(1), since it is earned from land situated outside India] 1,00,000 Dividend from a company in Country X 70,000 1,70,000 Gross Total Income 9,70,500 Less: Deduction under Chapter VI-A [No deduction allowable as per section 115BAC] - Total Income 9,70,500 Computation of net tax liability of Mr. Arvind for A.Y.2025-26 Particulars ₹ Tax payable on 9,70,500 Upto 3,00,000 Nil 3,00,000 to 7,00,000 @ 5% 20,000 7,00,000 to 9,70,500 @10% 27,050 47,050 Add: Health and education cess@4% 1,882 48,932 Less: Rebate under section 91 (See Working Note below) 10,067 Tax Payable 38,865 Tax Payable (rounded off) 38,870 Calculation of Rebate under section 91: Particulars ₹ Average rate of tax in India [i.e.,48,932/9,70,500 x 100] = 5.042% Doubly taxed income pertaining to Country X Agricultural income 1,00,000 Dividend from a company in Country X [Not includible, since exempt in Country X] - 1,00,000 Rebate under section 91 on 1,00,000 @5.042% [being the lower of average Indian tax rate (5.042%) and Country X tax rate (10%)] 5,042 Doubly taxed income pertaining to Country Y Income from house property less business loss set-off against income chargeable to tax in India (₹ 2,20,500 - 1,20,000) 1,00,500 Rebate under section 91 on 1,00,500 @5% [being the lower of average Indian tax rate (5.042%) and Country Y tax rate (5%)] 5,025 Total rebate under section 91 (Country X + Country Y) 10,067