Compute the total income and tax liability Winter Technologies Inc., a non-resident German company for the A.Y. 2025-26. The following are the…

Computation of total income and tax liability of Winter Technologies Inc., a non-resident German company, for the A.Y. 2025-26: Particulars ₹ Profits and gains from business or profession Business Income from a unit established at Mumbai 8,00,000 Income from other sources ➢ Dividend income from BlueWave Ltd. an Indian company 12,50,000 ➢ Fees for technical services [would be equivalent to the amount of debentures of 20,00,000 received from an Indian company, issued in consideration of providing technical knowhow] 20,00,000 ➢ Interest on Debentures [₹ 20,00,000 x 8% x 6/12] 80,000 ➢ Dividend on Global Depository Receipts (GDRs) of Greenfields Ltd. an Indian company, issued under a scheme of Central Government against the initial issue of Greenfields Ltd. and purchased in foreign currency by Winter Technologies Inc 5,50,000 ➢ Royalty income received from RedTech Ltd. an Indian company in pursuance of an agreement approved by Central Government 10,00,000 Gross Total Income/ Total income 56,80,000 Computation of tax liability Dividend income of 12,50,000, taxable @20% u/s 115A 2,50,000 Dividend on GDRs of 5,50,000, taxable @10% u/s 115AC 55,000 Royalty income of 10,00,000, taxable @20% u/s 115A, since it is in pursuance of an agreement approved by the Central Government 2,00,000 FTS of 20,00,000, taxable @35%, since it is not in pursuance of an agreement approved by the Central Government 7,00,000 Interest on debentures of 80,000, taxable @35%, since debt is incurred in Indian currency, it is not eligible for concessional rate of 20% u/s 115A 28,000 Business income of 8,00,000 [taxable @35%] 2,80,000 15,13,000 Add: Health and education cess@4% 60,520 Tax liability 15,73,520