Ms. Sana, aged 40 years, is an advocate (Taxation). She keeps her books of accounts on accrual basis. Her profit & loss account for the year…

Computation of Total Income of Ms. Sana for the A.Y.2026-27 under default tax regime under section 115BAC Particulars ₹ ₹ Income from house property Gross Annual Value 1 90,000 Less: Municipal taxes paid 9,000 Net Annual Value (NAV) 81,000 Less: Deduction under section 24(a) – 30% of NAV = 30% of ₹ 81,000 24,300 56,700 Profits and gains of business or profession Net profit as per Profit and loss account 25,91,000 Add: Expenses debited but not allowable (i) Purchase of car [Amount paid for purchase of car is not allowable since it is a capital expenditure] 3,00,000 (ii) Municipal tax paid in respect of house property [allowable as deduction under the head "Income from house property"] 9,000 (iii) Payment made to tax consultant in cash [disallowed under section 40A(3), since such cash payment exceeds ₹10,000] 50,000 (iv) Travel expenditure on foreign professional tour [Since it is incurred in connection with professional work, the same is allowable as deduction. As it has already been debited to profit and loss account, no further adjustment is required] - (v) Repair and maintenance of car [Repairs and maintenance paid in advance for the period 1.4.2026 to 30.9.2026 i.e. for 6 months amounting to ₹ 17,500 is not allowable as deduction, since Ms. Sana is following the accrual system of accounting] 17,500 3,76,500 29,67,500 Less: Income credited but not taxable under this head: (i) Dividend from an Indian company (taxable under the head "Income from Other Sources") 11,00,000 (ii) Interest on deposit certificates issued under gold monetization scheme, 2015 (taxability or otherwise to be considered under the head "Income from Other Sources") 25,000 (iii) Honorarium for valuation of answer papers 50,000 (iv) Rent received in respect of house property 90,000 12,65,000 17,02,500 Less: Depreciation on car @15% 45,000 16,57,500 Income from Other Sources Dividend from an Indian company 11,00,000 Interest on deposit certificates issued under gold monetization scheme, 2015 [Exempt under section 10(15)] - Honorarium for valuation of answer papers 50,000 Gross Total Income 11,50,000 Less: Deduction under Chapter VI-A [Deduction under section 80D would not be allowable] 28,64,200 Total Income - 28,64,200 Computation of tax payable under default tax regime under section 115BAC Particulars ₹ Tax on total income of ₹ 28,64,200 Upto ₹ 4,00,000 Nil ₹ 4,00,001 - 8,00,000 [i.e., ₹ 4,00,000@5%] 20,000 ₹ 8,00,001 – ₹ 12,00,000 [i.e., ₹ 4,00,000@10%] 40,000 ₹ 12,00,001 – ₹ 16,00,000 [i.e., ₹ 4,00,000@15%] 60,000 ₹ 16,00,001 – ₹ 20,00,000 [i.e., ₹ 4,00,000@20%] 80,000 ₹ 20,00,001 – ₹ 24,00,000 [i.e., ₹ 4,00,000@25%] 1,00,000 ₹ 24,00,001 – ₹ 28,64,200 [i.e., ₹ 4,64,200 @30%] 1,39,260 4,39,260 Add: Health and Education cess@4% 17,570 Tax Liability 4,56,830 1 Rent received has been taken as the Gross Annual Value in the absence of other information relating to Municipal Value, Fair Rent and Standard Rent. Computation of total income and tax payable by Ms. Sana for the A.Y.2026-27 under regular provisions of the Act Particulars ₹ Gross Total Income 28,64,200 [Income under the “Income from house property” “Profits and gains from business or profession” and “Income from other sources” would remain the same under regular provisions of the Act] Less: Deductions under Chapter VI-A Section 80D Medical insurance premium paid online for parents, being senior citizens 47,000 Payment made in cash of ₹ 8,500 for preventive health check-up for self and spouse restricted to 5,000 52,000 Total Income 28,12,200 Tax on total income of 28,12,200 Upto ₹ 2,50,000 Nil ₹ 2,50,001 – ₹ 5,00,000 [i.e., ₹ 2,50,000@5%] 12,500 ₹ 5,00,001 – ₹ 10,00,000 [i.e., ₹ 5,00,000@20%] 1,00,000 ₹ 10,00,001 – ₹ 28,12,200 [i.e., ₹ 18,12,200 @30%] 5,43,660 6,56,160 Add: Health and Education cess@4% 26,246 Tax Liability 6,82,406 Tax Liability (Rounded off) 6,82,410 Note - Since the tax liability under default tax regime under section 115BAC is lower than the tax liability under the regular provisions of the Act, it would be beneficial for Ms. Sana to pay tax under default tax regime under section 115BAC for A.Y. 2026-27.