Mr. Arnav, an individual retired employee of the Aman Ltd. aged 64 years, is a well-known singer deriving income of ₹ 1,40,000 from stage shows abroad. Tax of ₹ 14,000 was deducted in the country where the shows were per

Computation of Tax Liability of Mr. Arnav for the A.Y. 2026-27 under normal provisions of the Act Particulars Amt in ₹ Amt in ₹ Indian Income 6,40,000 Foreign Income from stage show abroad 1,40,000 Gross Total Income 7,80,000 Less: Deductions under chapter VI-A Deposit in PPF (Section 80C) Contribution to approved Pension Fund of LIC (Section 80CCC) Aggregate deduction u/s 80C and 80CCC restricted to ₹ 1,50,000 (Section 80CCE) Contribution to CGHS (Section 80D) Medical insurance premium on health of mother (age 84 years), non-Resident ₹ 28,000 (restricted to ₹ 25,000) 1,45,000 22,000 28,000 25,000 (1,50,000) (53,000) Total Income 5,77,000 Calculation of Tax Payable Particulars Amt in ₹ Income Tax as per Slab rates for AY 2026-27 25,400 Add: HEC @ 4% 1,016 Total Tax 26,416 Average Rate of Tax in India (26,416 x 100 / 5,77,000) 4.578% Average Rate of Tax in Foreign country (14,000 x 100 / 1,40,000) 10.00% Relief u/s 91 on 1,40,000 @ 4.578% (Lower of Avg Indian Tax rate or Avg Foreign Tax rate) 6,409 Tax Payable in India (26,416 - 6,409) 20,007 Tax Payable (Rounded off) 20,010