Broad mode of computation of Income
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Rs. |
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1 |
Income from salaries, allowances and perquisites |
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2. |
Less : Deduction under section 16, entertainment allowance and professional tax: |
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3. |
Taxable income under the head “Salaries” (1-2) |
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4. |
Income from house property - Adjusted net annual value |
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5. |
Less : Deductions under section 24 |
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6 |
Taxable income under the head Income from house property (5-6) |
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7. |
Profits and gains of business or profession - Profit/loss as per P&L account after deducting amounts not allowable as deduction, adding amounts which are allowable as deduction and adding income taxable under this head, though not credited/debited to P&L account |
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8. |
Less : Incomes which are credited to P & L A/c but are exempt under sections 10 to 13A or are taxable under other heads of income |
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9. |
Taxable income under the head Profits and gains of business or profession (7-8) |
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10. |
Capital gains |
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11. |
Less : Amount exempt under sections 54, 54B, 54D, 54EC, 54ED, 54F, 54G and 54GA |
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12 |
Taxable income under the head Capital gains (10-11) |
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13 |
Income from other sources |
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14. |
Less : Deductions under section 57 |
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15 |
Taxable income under the head Income from other sources (13-14) |
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16. |
Total Income (3+6+9+12+15) |
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17 |
Less : Adjustment on account of set-off and carry forward of losses |
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18. |
Less : Deductions under sections 80C to 80U |
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19 |
Total income or net income liable to tax (16-17-18) |
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20 |
Income subject to special rate of tax (e.g. capital gains) |
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21 |
Balance income subject to normal rate (20+21 = 19) |
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Computation of tax liability |
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A1. |
Tax on net income at special rates |
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A2 |
Tax on income at normal rates |
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B |
Less : Rebate under section 88E in respect of STT (available for AY 2008-09 but not available for AY 2009-10) |
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C |
Add : Surcharge |
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D |
Add: Education cess and secondary and higher education cess |
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E |
Less : Rebate under sections 86, 89, 90, 90A and 91 |
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F |
Net Tax payable (A1+A2-B+C+D-E) |
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G |
Tax paid on self-assessment |
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H |
Tax deducted or collected at source |
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I |
Tax paid in advance |
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J |
Balance Tax payable (F-G-H-I) |
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