Mr. Manoj, aged 47 years born in India, left for employment in United States in October, 2010. Since, then he is staying in USA and his wife is…

Computation of total income and net tax liability of Mr. Manoj for the A.Y. 2025-26 Mr. Manoj is a non-resident for the A.Y. 2025-26 since he never stayed for more than 30 days in India in any financial year after F.Y.2010-11. Particulars (₹) (₹) Capital Gains Long term capital gain on sale of listed shares of a Domestic Company Full value of consideration 15,00,000 Less: Cost of Acquisition [Assuming that the fair market value as on 31.1.2018 is the same. Further, no indexation and foreign currency fluctuations will be allowed while computing LTCG u/s 112A] Higher of Actual cost Lower of Fair market value on 31.1.2018 Full value of consideration 13,00,000 13,00,000 13,00,000 15,00,000 Long-term capital gain 2,00,000 Income from Other Sources Difference between actual consideration and stamp duty value on purchase of vacant land will not be taxable u/s 56(2)(x), since the same is received from a trust registered u/s 12AB Nil Dividend from X Ltd. 55,000 Interest credited to NRE Account with SBI, Delhi Branch - exempt Nil Royalty for authoring a book on literature 2,00,000 2,55,000 Gross Total Income 4,55,000 Less: Deduction under section 80C in respect of life insurance premium restricted to 1,50,000 Total Income 3,05,000 Computation of tax payable Tax on Dividend @ 20% 11,000 Tax on Long-term capital [email protected]% on 75,000 exceeding - 1,25,000 9,375 Tax on other income of 50,000 at slab rate, since it is less than the basic exemption limit of 2,50,000 Nil 20,375 Add: Health and education cess@4% 815 Tax Liability 21,190 Note – Question states that Mr. Manoj's wife invested in her husband's name in listed shares of a domestic company. Long term capital gain on sale of listed shares on which STT has been paid at the time of purchase and sale, is calculated under section 112A. On transfer of listed shares acquired before 1.2.2018, the Fair Market Value as on 31.1.2018 is required. However, this information is not given in the question. On account of absence of this information, the above solution is given on the assumption that the fair market value as on 31.1.2018 is same as the actual cost of 13lakhs. However, alternate answer is also possible on the assumption that the fair market value as on 31.1.2018 is same as sale consideration of 15lakhs. In such case, LTCG would be Nil, Total Income and Tax Liability would - 1,05,000 and - 11,440, respectively.