Mr. Bhushan, an Indian citizen aged 51 years, left India for the first time on 1 st April 2021 to settle in Country X. But owing to some personal…

(c) Mr. Bhushan is a resident in India for A.Y.2026-27, since his stay in India in the P.Y.2025-26 is for 304 days which exceeds the minimum required stay of 182 days in that previous year. Also, his stay in India must be more than 730 days in the immediately preceding seven years, and he must be resident in 7 years (P.Y.2015-16 to P.Y.2021-22) out of 10 years immediately preceding P.Y. 2025-26, since he left India for the first time on 1 st April, 2021. Hence, he is resident and ordinarily resident in India for A.Y. 2026-27. Accordingly, his global income would be subject to tax. He would, however, be entitled for deduction under section 91 in respect of doubly taxed income earned in Country X. Computation of total income of Mr. Bhushan for A.Y. 2026-27 Particulars ₹ ₹ Income from House Property [Residential property in Country X] Annual Value⁴ ($ 32,000 × 75, exchange rate on 31.3.2026) 24,00,000 Less: Deduction under section 24 – 30% of NAV 7,20,000 16,80,000 Profits and Gains of Business or Profession Income from business in India 6,20,000 Income from Other Sources Dividend from Indian company [₹ 2,25,000 x 100/90] 2,50,000 Interest on savings bank account with PNB 13,500 2,63,500 Gross Total Income 25,63,500 Less: Deduction under Chapter VIA Under section 80TTA - Interest on savings bank account (actual interest of ₹ 13,500 or ₹ 10,000, whichever is lower) 10,000 Total Income 25,53,500 Computation of net tax liability of Mr. Bhushan for A.Y.2026-27 Particulars ₹ Tax on total income [30% of ₹ 15,53,500 + ₹ 1,12,500] 5,78,550 Add: Health and Education cess@4% 23,142 6,01,692 Less: Deduction under section 91 (See Working Note below) 2,41,500 Net Tax Liability 3,60,192 Net Tax liability (rounded off) 3,60,200 Working Note: Calculation of deduction under section 91 Particulars ₹ ₹ Average rate of tax in India [i.e., 6,01,692/₹ 25,53,500x100] 23.56% Average rate of tax in country X [20% of $ 23,000 ($ 32,000 - $ 9,000) = $ 4,600/$ 32,000 x 100 = 14.375% 14.375% Doubly taxed income Income from house property 16,80,000 Deduction u/s 91 on ₹ 16,80,000 @14.375% (being the lower of average Indian tax rate (23.56%) and foreign tax rate (14.375%)] 2,41,500