Mr. Sarthak, an individual and Indian citizen living abroad (Dubai), a tax haven, since year 2005 and never came to India for a single day since then, earned the following incomes during previous year 2021-22: ParticularsAmount (in ₹) (i) Income accrued and arisen in Dubai not taxable in Dubai (being tax haven)20,00,000 (ii) Income accrued and arisen in India5,00,000 (iii) Income deemed to accrue and arise in India8,00,000 (iv) Income arising in Dubai from a profession set up in India10,00,000 I. Determine the residential status of Mr. Sarthak and taxable income for the previous year 2021-22 (assuming no other income arise during the previous year). II. What would be your answer if income arising in Dubai from a profession set up in India is ₹ 2 lakhs instead of 10 lakhs? III. What would be your answer, if Mr. Sarthak born in Dubai and his parents were born in India?

Mr. B is a sales manager in PQR Ltd. During F.Y. 2021-22 he has received the following towards his salary and allowances/perquisites; (i) Basic pay ₹ 85,000 per month upto December 2021 and thereafter an increase of ₹ 2,000 per month. (ii) Dearness allowance 40% of basic pay forming part of retirement benefits. (iii) Bonus 1 month basic pay based on the salary drawn during January month every year. (iv) He contributes 14% of his basic pay & DA towards his recognized provident fund and his employer company contributes the same amount. (v) Travelling allowance of ₹5,000 per month towards on duty tours. (vi) Research and training allowance ₹3,000 per month. (vii) Children education allowance of ₹ 600 per month, per child for his 2 sons and 1 daughter. (viii) Accommodation owned by PQR Ltd. was provided to him in Hyderabad for the whole year and furniture of ₹2,00,000 was provided from 1st October, 2021. (ix) Reimbursement of medical expenses on his treatment in private hospital - ₹15,000, medical allowance ₹1,500 per month. Company has paid premium on medical policy purchased on his health ₹12,500. You are required to: I. Compute the income chargeable to tax under the head "Income from Salary", assuming that he does not opt for the provisions under section 115BAC. II. What will be the income under the head “Salaries”, if he opts for the provisions under section 115BAC?