Question

Ms. Mohini, a non-resident, aged 61 years, in the previous year 2018-19, earned Rs.

3,50,000 from processing of agricultural produce in India. She earned USD 5,000

(1 USD=72) from agricultural land in Australia. Her non-agricultural income in India

was Rs. 7,50,000 and outside India was Rs. 60,00,000 (estimated). She has

contributed USD 1,000 in PM Relief Fund in Australia and Rs 70,000 (via Bank

NEFT transfer) to the ‘International Society for Krishna Consciousness’ (eligible u/s

80G) in India. Compute her total taxable income in India for the A.Y. 2019-20.​

Answer 1

Answer:

net taxable income will come out to be rs643000

Explanation:

agricultural income from India is exempt u/s 10(1) and from Australia it will be assumed that it is received outside India so that agricultural income will not be taxable since the assessee is NR

Income earned and received o/s India is not not taxable in india(i.e. rs 6000000)

Remaining income of rs750000 will be the gross taxable income

on this income deduction u/s 80G is allowed as per question

so 72000(i.e 1000usd*72) will be allowed fully

and for the 70000 amt we have to check the qualifying limit

since no other income and deduction is given in question 750000 will the adjusted total gross income

and 10% of adjusted total gross income or the donation amt lower of them will be allowed as deduction u/s 80G

10% of 750000= 75000

donation amt =70000(lower amt)

so as per the provision 50% of 70000(i e 35000) will be allowed as deduction.

750000-72000(pm relief fund)-35000(explained above)=rs643000

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