Following are the incomes of Mr. John for the financial year 2023-24;
a) Income from agriculture in UK invested in Nepal ₹2,000
b) Interest of fixed deposit in SBI, KGF ₹800
c) Dividends received in UK from an American co., (out of which ₹2,000 was remitted to 
India) ₹10,000
d) Salary (computed) drawn for 3 months for working in Indian embassy’s office in Australia 
and salary received there ₹72,000
e) Income from house property in USA ₹15,000
f) Pension (computed) received in UK for services rendered in India with a ltd. Co. ₹15,000
g) Profits earned from a business in Paris which was controlled from India, half of the profits 
being received in India ₹1,00,000
h) Past untaxed foreign income brought into India during the previous year ₹20,000
i) Share of income from HUF ₹50,000
j) Dividend from an Indian company ₹10,000
k) Gift from his brother of ₹50,000; compute his gross total income for the A.Y 2024-25.

To compute Mr. John’s gross total income for the Assessment Year (A.Y.) 2024-25, we must evaluate each income item and determine its taxability under the Income Tax Act, considering whether it is income accrued or received in India and if any exemptions or deductions apply.

### Analysis of Income Items for Gross Total Income Calculation

1. **Income from agriculture in UK invested in Nepal ₹2,000**  
   *Agricultural income earned outside India* is **not taxable** in India.  
   **Taxable Amount:** ₹0

2. **Interest of fixed deposit in SBI, KGF ₹800**  
   Interest earned from an Indian bank is **taxable**.  
   **Taxable Amount:** ₹800

3. **Dividends received in UK from an American company (₹2,000 was remitted to India) ₹10,000**  
   Foreign dividends are taxable, even if only a portion is remitted to India.  
   **Taxable Amount:** ₹10,000

4. **Salary drawn for 3 months for working in Indian embassy’s office in Australia, received in Australia ₹72,000**  
   Salary received for services in an Indian embassy office is **not taxable** in India since it was earned outside India and received there.  
   **Taxable Amount:** ₹0

5. **Income from house property in USA ₹15,000**  
   Income from house property abroad is **taxable** for a resident.  
   **Taxable Amount:** ₹15,000

6. **Pension received in UK for services rendered in India ₹15,000**  
   Pension received from foreign sources for services in India is **taxable**.  
   **Taxable Amount:** ₹15,000

7. **Profits from a business in Paris, controlled from India (half received in India) ₹1,00,000**  
   Since the business is controlled from India, **entire profit** is **taxable** in India, even if only half is received in India.  
   **Taxable Amount:** ₹1,00,000

8. **Past untaxed foreign income brought into India during the previous year ₹20,000**  
   Past foreign income that has already been taxed previously is **not taxable** when brought into India.  
   **Taxable Amount:** ₹0

9. **Share of income from HUF ₹50,000**  
   Share of income from a Hindu Undivided Family (HUF) is **exempt from tax**.  
   **Taxable Amount:** ₹0

10. **Dividend from an Indian company ₹10,000**  
   Dividends from Indian companies are **exempt** under Section 10(34) of the Income Tax Act.  
   **Taxable Amount:** ₹0

11. **Gift from his brother ₹50,000**  
   Gifts from relatives (like a brother) are **exempt** from tax.  
   **Taxable Amount:** ₹0

### Computation of Gross Total Income

Summing up the taxable items:

| Description                                         | Taxable Income (₹) |
|-----------------------------------------------------|---------------------|
| Interest from fixed deposit in SBI                  | 800                 |
| Dividends received in UK from an American company   | 10,000              |
| Income from house property in USA                   | 15,000              |
| Pension received in UK for services in India        | 15,000              |
| Profits from business in Paris (controlled from India) | 1,00,000         |

**Gross Total Income = 800 + 10,000 + 15,000 + 15,000 + 1,00,000 = ₹1,40,800**

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### Gross Total Income for A.Y. 2024-25: ₹1,40,800

Would you like further explanations on any specific item or additional details? 

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Here are 5 related questions:
1. What is the tax treatment of foreign income remitted to India for non-residents?
2. How is income from agricultural sources treated under Indian tax law?
3. Are dividends from foreign companies always taxable in India?
4. What are the exemptions applicable to pension income for Indian residents?
5. How does tax treatment vary for income earned abroad but controlled from India?

**Tip:** Always review residency status when calculating tax on foreign income, as residency determines which incomes are taxable in India.

Following are the incomes of Mr. John for the financial year 2023-24; a) Income from agriculture in UK invested in Nepal ₹2,000 b) Interest of fixed deposit in SBI, KGF ₹800 c) Dividends received in UK from an American co., (out of which ₹2,000 was remitted to India) ₹10,000 d) Salary (computed) drawn for 3 months for working in Indian embassy’s office in Australia and salary received there ₹72,000 e) Income from house property in USA ₹15,000 f) Pension (computed) received in UK for services rendered in India with a ltd. Co. ₹15,000 g) Profits earned from a business in Paris which was controlled from India, half of the profits being received in India ₹1,00,000 h) Past untaxed foreign income brought into India during the previous year ₹20,000 i) Share of income from HUF ₹50,000 j) Dividend from an Indian company ₹10,000 k) Gift from his brother of ₹50,000; compute his gross total income for the A.Y 2024-25.

Learn how to compute Mr. John's gross total income for the Assessment Year 2024-25, considering various income sources such as interest, dividends, salary, foreign income, and exemptions. The solution explains the taxability of each income item under the Indian Income Tax Act.

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