Mr. Beeta, aged 30 years, resident in India and a musician derived income of ₹5,00,000 from concerts performed outside India. Tax of ₹1,00,000 was deducted at source in the country where the concerts were given by Mr. Be
CS Professional · Advanced Tax Laws and Practice · PYQS · December 2017
Mr. Beeta, aged 30 years, resident in India and a musician derived income of ₹5,00,000 from concerts performed outside India. Tax of ₹1,00,000 was deducted at source in the country where the concerts were given by Mr. Beeta. India does not have any agreement with that country for avoidance of double taxation. Indian income of Mr. Beeta during the year was of ₹3,00,000. Work out of the amount of tax payable and relief due to him under section 91 for the Assessment Year 2017-2018.
Answer & Explanation:
Computation of Total Income and Tax Liability of Mr. Beeta for the AY 2017-18 Particulars Amount (INR) Amount (INR) Indian Income 3,00,000 Foreign Income 5,00,000 Total Taxable Income 8,00,000 Tax including EC+SHEC 87,550 Average rate of tax in India (87,550 / 8,00,000 * 100) 10.94% Foreign tax rate (1,00,000 / 5,00,000 * 100) 20% Doubly Taxed Income 5,00,000 Relief under section 91 (on ₹5,00,000 @ 10.94%) i.e. rate 10.94% or 20% whichever is lower 54,700 Tax Payable 32,850
Topics: Income Tax Act, 1961
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