Mukesh, aged 27 years, an ordinary resident in India, is a well-known football player. He has earned the following income and made investment with respect the financial year 2022-23: S. No. Particulars Amount (₹) (i) Ind

Computation of Total Income and Tax Liability of Mr. Mukesh for AY 2023-24 Since Mr. Mukesh is an Ordinary Resident in India, his global income is taxable in India. He has opted for Section 115BAC (New Tax Regime). Particulars Amount (₹) Indian income from playing football (computed) 7,40,000 Foreign income earned from football tournament in country Z (computed) 9,00,000 Agricultural income in country Z (exempted in the country but taxable in India for an ordinary resident) 3,00,000 Gross Total Income 19,40,000 Less: Deduction under Chapter VI-A (Since Mukesh has opted for new tax regime, no deduction is allowed, including for Life Insurance Premium paid) Nil Total Income 19,40,000 Tax Payable (as per slab under new scheme): Up to ₹2,50,000 Nil ₹2,50,001 - ₹5,00,000 (2,50,000 * 5%) 12,500 ₹5,00,001 - ₹7,50,000 (2,50,000 * 10%) 25,000 ₹7,50,001 - ₹10,00,000 (2,50,000 * 15%) 37,500 ₹10,00,001 - ₹12,50,000 (2,50,000 * 20%) 50,000 ₹12,50,001 - ₹15,00,000 (2,50,000 * 25%) 62,500 Above ₹15,00,000 (19,40,000 - 15,00,000 = 4,40,000 * 30%) 1,32,000 Total Income Tax 3,19,500 Add: Secondary and Higher Education Cess @ 4% (3,19,500 * 4%) 12,780 Total Tax Liability before relief 3,32,280 Less: Relief under section 91 (Lower of Indian Rate or foreign rate of tax) (1,26,000) Net Tax Payable 2,06,280 Working Note for Relief under Section 91: Since there is no DTAA between India and country Z, relief under Section 91 is available for foreign tax paid. Average rate of tax in India: (Total Indian Tax Liability / Total Income) * 100 = (₹3,32,280 / ₹19,40,000) * 100 = 17.13% Average rate of tax in Country Z: (Tax paid in Country Z / Foreign Income) * 100 = (₹1,26,000 / ₹9,00,000) * 100 = 14% Relief under Section 91 is the lower of the average Indian tax rate or the average foreign tax rate on the foreign income. In this case, the foreign tax paid (₹1,26,000) is lower than the Indian tax on foreign income (₹9,00,000 * 17.13% = ₹1,54,170). Therefore, the relief allowed is ₹1,26,000.