Usha, aged 50 years, a resident in India for the previous year 2017-18 receives professional fee of ₹4,50,000 for rendering services outside India. Tax of ₹1,20,000 was deducted at source in the country with which India

Computation of Tax Liability of Ms. Usha for AY 2018-19 Particulars Amounts (₹) Income under the head Business and Profession Foreign Income (₹4,50,000 + ₹1,20,000) 5,70,000 Less: Expenses incurred 1,60,000 Income under the head Business and Profession 4,10,000 Income from Other Sources 2,50,000 Total Income 6,60,000 Less: Deduction u/s 80C - PPF 1,40,000 Net Total Income 5,20,000 Income Tax ((₹5,20,000 - ₹5,00,000) * 20% + ₹12,500) 16,500 Add: EC+SHEC @ 3% 495 Total Tax 16,995 Less: Relief u/s 91 13,400 Net Tax Payable 3,595 Net Tax Payable (Round off) 3,600 Computation of Relief u/s 91 Particulars Amount (₹) Doubly Taxed Income 4,10,000 Total Income in India 5,20,000 Tax on total income in India 16,995 Tax paid in foreign country 1,20,000 Total income assessed in foreign country 5,70,000 (a) Tax on such doubly taxed income in India (16995 * 410000) / 520000 13,400 (b) Tax on such doubly taxed income in Foreign Country (120000 * 410000) / 570000 86,316 Relief u/s 91 will be lower of (a) or (b) above 13,400