Computation of total income of Mrs. S.C. Bose for A.Y. 2025-26 under
default tax regime under section 115BAC(1A)
Particulars
`
`
I
Income from house property
Self-occupied
portion
[First
Floor]
Annual Value
Nil
TAXATION
Less: Deduction u/s 24
Interest on housing loan [Not
allowed under default tax regime]
Nil
Nil
II
Profits and gains from business or
profession
Net profit
20,69,000
Add: Items of expenditure not
allowable
while
computing
business income
- Expenses relating to books
authored by her [Allowed as
deduction considering royalty
income is taxable under the
head “Profits and gains from
business or profession”]
Nil
[Note - Royalty income may be
taxed under the head “Income
from other Sources”. In such
case, expenses relating to books
would
not
be
allowed
as
deduction
while
computing
business income and allowed
from
royalty
income
while
computing “Income from Other
Sources”.]
- Expenses in connection with
dividends [Not allowed since
expense
is
in
respect
of
dividend taxable under the head
“Income from Other Sources”]
12,000
- Amount paid to IIT Chennai
from scientific research projects,
not allowable under default tax
regime
35,000
- Computers and other electronic
items [Capital expenditure not
allowed as deduction]
4,50,000
- Payment to a farmer exceeding
₹ 10,000 in cash for purchase of
flower
and
creepers
[Not
disallowed under section 40A(3),
since payment to farmer comes
under exclusion]
Nil
- One-time deposit to electricity
and
water
department,
not
allowed as deduction
2,00,000
- Excessive salary paid to brother
[Disallowed
under
section
40A(2), since brother falls under
the definition of relative and
salary paid is in excess of market
rate] [₹ 2,40,000 – ₹ 1,80,000]
60,000 7,57,000
28,26,000
Less: Items of income to be
treated separately under the
respective head of income
- Family
pension
from
PSU
[Taxable
under
the
head
“Income from Other Sources”]
3,60,000
- Royalty from California University
[No adjustment is required since
royalty is taxable under the head
“Profits and gains from business
or profession”]
Nil
[Note - Royalty income may be
taxed under the head “Income
from Other Sources”. In such
case, the income has to be
reduced
while
computing
business income.]
TAXATION
- Dividend [Taxable under the
head
“Income
from
Other
Sources”]
4,50,000
- Interest on FDRs [Taxable under
the head “Income from Other
Sources”]
76,000
8,86,000
19,40,000
Less: Allowable expenditure
- Interest on residential house
used for shop [₹ 3,37,500/2]2
[Since the interest is paid on or
before due date of filing return
of income, disallowance under
section 43B would not be
attracted.]
1,68,750
- Depreciation
On
Computer
and
other
electronic items other than
television and washing machine
[₹ 3,50,000 x 40% x 50%, since it
is purchased and put to use for
less than 180 days]
70,000
On residential house used for
shop [₹ 1,10,00,000 x 10% x 50%
for ground floor]
5,50,000
On electric vehicle [₹ 25,00,000 x
40%]
10,00,000 16,20,000
1,51,250
III Capital Gains
Sale consideration on sale of listed
shares of SBCL Ltd.
11,66,000
Less: Cost of acquisition
2,65,000
2 Assumed the portion of ground floor and first floor is equal.
Short term capital gains taxable
under section 111A [Since shares are
held for less than 12 months and STT
has been paid]
9,01,000
IV Income from Other Sources
Family pension from PSU
3,60,000
Less:
Lower
of
33-1/3%
of
₹ 3,60,000 or ₹ 25,000 allowed as
deduction
25,000
3,35,000
Dividend [₹ 4,50,000/90%]
5,00,000
Less: Expenditure to the extent of
20% of dividend
12,000
4,88,000
[Note - If it is assumed that
expenditure are in the nature of
expenses
other
than
interest
expenses, no deduction would be
allowed from dividend income.]
Interest on FDRs
76,000
8,99,000
Gross Total Income
19,51,250
Less: Deduction under section
80QQB and 80TTB [Not allowable
under default tax regime]
Nil
Total Income
19,51,250
Computation of total income of Mrs. S.C. Bose for A.Y. 2025-26
under the optional tax regime of the Income-tax Act, 1961
Particulars
`
`
Gross Total Income as per default tax regime
u/s 115BAC
19,51,250
Less: Interest on borrowings for self-occupied
property [₹ 3,37,500 / 2]
1,68,750
100% deduction under section 35(2AA) for
amount paid to IIT Chennai from scientific
research projects
35,000
2,03,750
17,47,500
TAXATION
Add: Excess deduction from family pension
[₹ 25.000 - ₹ 15,000] [Lower of 33-1/3% of
₹ 3,60,000 or ₹ 15,000 as deduction is allowed
from family pension under optional tax regime]
10,000
Gross Total Income as per optional tax
regime
17,57,500
Less: Deduction under Chapter VI-A
Deduction under section 80QQB
Deduction for royalty income of ₹ 3,50,000
[₹ 4,25,000 – ₹ 75,000], restricted to ₹ 3,00,000
3,00,000
Deduction under section 80TTB
Interest on FDRs assuming FDRs are with banks,
restricted to
50,000
[Note - If it is assumed that FDRs are not with
banks, co-operative society engaged in banking
business or post office, deduction under section
80TTB would not be available.]
3,50,000
Total Income
14,07,500