Chirag, aged 51 years, a resident individual furnishes the following particulars of income earned by him in India and Country PQR for the previous year 2023-24. India does not have a double taxation avoidance agreement (

Answer 6(a) Computation of total income of Chirag for A.Y.2024-25 (Normal provisions of the Income Tax Act, 1961) Particulars Amount in Rs. Amount in Rs. Profits and Gains of Business or Profession Income from profession carried on in Mumbai (India) 7,50,000 Royalty income from a literary book in Country PQR (after deducting expenses of ₹ 75,000) 5,50,000 13,00,000 Less: Business loss in Country PQR (1,10,000) 11,90,000 Income from Other Sources Agricultural income in Country PQR [Not exempt u/s 10(1)] 1,30,000 Dividend received from a company incorporated in Country PQR 85,000 2,15,000 Gross Total Income 14,05,000 Less: Deduction under Chapter VIA Under section 80QQB -Royalty income of a resident from a literary book (3,00,000) Total Income 11,05,000 Note - Since adjusted total income (i.e., ₹ 14,05,000) does not exceed ₹ 20 lakhs, AMT would not be attracted in this case. Computation of net tax liability of Chirag for A.Y.2024-25 Particulars Amount in Rs. Amount in Rs. Tax on total income @ slab rate [30% of ₹ 1,05,000 plus ₹ 1,12,500] 1,44,000 Add: Health and education cess @4% 5,760 Tax Liability 1,49,760 Calculation of Rebate under section 91 Average rate of tax in India [i.e., ₹ 1,49,760 / ₹ 11,05,000 X 100) 13.5529% Average rate of tax in Country PQR 16% Doubly taxed income pertaining to Country PQR Agricultural Income 1,30,000 Royalty Income [₹ 625000-₹ 75000 (Expenses) - ₹ 300000 (deduction u/s 80QQB)] 2,50,000 Doubly taxed income includes only that part of income which is included in the assessee's total income. The amount deducted under Chapter VIA is not doubly taxed and hence, no relief is allowable in respect of such amount Dividend income 85,000 Less: Business Loss set off (1,10,000) 3,55,000 Rebate under section 91 on ₹ 3,55,000 @ 13.5529% [being the lower of average Indian tax rate (13.5529%) and foreign tax rate (16%)] (48,113) Net tax liability 1,01,647 Net tax liability (Rounded off) 1,01,650