Computation of Taxable Income with Tax Payable

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Find out how to compute taxable income that is liable to tax.

Format for Statement of Taxable Income

Salary Income/ Income From Salaries

  • Basic Salary
  • Taxable Allowances
  • Taxable value of perquisites

Gross Salary

  • Less: Entertainment Allowance
  • Less: Professional Tax

Net Taxable Salary

Income From House Property

Self-occupied Property

  • Less: Deduction u/s 24 for interest on loans

Let-out Property Gross Annual Value

  • Less: Municipal Taxes Paid

Net Annual Value

  • Less: Deduction u/s 24

Income From House Property

Profit and Gains of Business or Profession

  • Net Profit/Loss

Income From Capital Gains

Short-Term Capital Gains

Long-Term Capital Gains

  • Less: Carried forward Capital Loss Taxable Capital Gains

Income From Other Sources

Total Income From other Sources

  • Less: Deduction u/s 57 income from other sources

Total Income/Aggregate of Income/

  • (Total of Salary Income+House Property+Profit from Business & Profession+Income from Capital Gains+Other Sources of Income)

Less: Deduction u/s 80C to 80 U

  • 80C (Investment in schemes like LIC)
  • 80CCC (Pension Fund)
  • 80CCD (New Pension Scheme)
  • 80CCF (Infrastructure Bonds) (Not Applicable for A.Y. 2013-14)
  • 80CCG (Equity Saving Schemes)
  • 80D (Mediclaim)
  • 80G (Donation)
  • 80GG (Rent Paid)
  • 80 TTA (Saving Bank  A/c Interest)
  • Others Deductions

Total Income (After Gross Total Income – Deduction )  Round off income to the nearest rupees ten

Net Agricultural Income

Computation of Tax Liability on Taxable Income

Divide the net taxable income as following

  1. Special tax rates income like Income Tax on Long Term Capital Gain, Income Tax on Short Term Capital From Transfer of Securities
  2. Remaining income subject to normal income tax rates

 Long-term capital gains @ 20% and on Long-term capital gains arising from listed securities @ 10%.

Short-term capital gains from the transfer of shares or unites shall be taxable @ 15%. Other short term capital gains shall be taxable at normal rates.

Net Tax Payable (See Income Tax Slab)

  • Add: Surcharge (Surcharge is payable only by domestic companies and foreign companies if income exceeds Rs. 1 Crore)
  • Add: Education Cess (Education Cess @ 2% and Secondary & Higher Education Cess @1% of Income tax and Surcharge)

Total Tax Payable

  • Less: Relief u/s 86 and 89 (1)

Balance Tax Payable

  • Add: Interest Payable (if any) u/s 234A or u/s 234B & 234C

Total Tax Payable

  • Less: TDS/TCS
  • Less: Pre-paid taxes i.e. advance tax, self assessment tax

Balance tax is your total tax liability. Check how to pay income tax online?

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2 thoughts on “Computation of Taxable Income with Tax Payable”

  1. My mother is having total income of 3.5 Lacs and she is 67 years. Can you please tell me what would be the tax impact for this FY and also for the next FY

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