Computation of Total

Income and Tax

Liability
Computation of total income and tax

Computation of Income and taxes

Income from salaries xxx

Income from House Property xxx
Profits & Gains from business / profession xxx
Capital gains xxx
Income from other sources xxx
Gross Total Income xxx

Less : Deductions u/s 80 xxx

Total Income xxx
Tax on total income xxx
Less; Rebate us 87A* xxx
xxx
Add : Surcharge xxx
Add: Education cess xxx
Less : Rebate / Relief u/s 90A /91 xxx

Total tax payable xxx

Less : Taxes paid
Advance tax xxx
TDS xxx
Self Assessment tax xxx
Tax due / Refund due xxx
If income of individual is upto Rs.7 lac, then entire tax or
25000 whichever is less is allowed as a rebate.
Alternate Minimum Tax – Non Corporate
Assessee
Applicability:

1) Adjusted Total Income > Rs.20 lacs ( applicable for

individual/HUF/AOP/BOI/AJP)
2) Claims deduction u/s 10AA,35AD, 80H-80RRB
3) Does not opt for Alternate Tax regime

AMT @18.5% is to be calculated on Adjusted Total Income

Adjusted Total Income = Total Income before claiming
deduction u/s 10AA,35AD, 80H-80RRB
Alternative Tax Regime and Regular Tax
Regime
From AY 2024-25, Alternative tax regime is the default tax
regime for Individual/ HUF/AOP/BOI/AJP, if there is no
Income from Business. However, the assessee can opt for
regular tax regime by exercising the option while filing return.
The option exercised is applicable only for that previous year.

If the assessee has Income from Business, then the option of

regular tax can be exercised by uploading form 10-IEA before
the due date of submission of ITR.
If the assessee withdraws this option, then the assessee will
never be able to exercise the option of opting for regular tax
regime.
Deductions/Incentives not allowed under
Alternative Tax Regime
1) LTA, HRA, Perquisite w.r.t meals upto Rs.50/meal
2) Special Allowances
3) Allowance to MPs/MLAs
4) Exemption for SEZ
5) Deduction of Entertainment allowance
6) Deduction of Profession Tax
7) Interest on housing loans
8) Deduction u/s 32A/ 33 AB/33ABA/35/ 35AD/35CCC
9) Deductions u/s 80C to 80U (except u/s 80CCD(2), 80CCH(2),
80JJAA, 80LA)
10) Loss under the head ‘House property’cannot be set off with
income under any other head.
 Exemptions/ Deductions allowed
Gratuity
Commuted pension
Leave salary
Compensation under VRS/ Retrenchment
Proceeds under life insurance policy
PF proceeds
NPS proceeds
Standard deduction under Salaries
Standard deduction for family pension
Standard deduction/ Interest on hsg loan under HP income in
case of LOP
Incomes taxable with special rates

Long term capital gains (STT applicable) – 10% on LTCG >

100000
Long term capital gains (STT not applicable) – 20%
Short term capital gains (STT applicable) – 15%
Winnings from lotteries etc – 30%
Identify the heads under which the following incomes would be
taxed
1. Interest on Govt. Bonds
2. Profit on sale of jewellery
3. Profit from running a kirana store
4. Profit from running a coaching centre
5. Monthly payments from employer
6. Interest on Fixed deposits with Bank
7. Rent from Let out flat
8. Rent from Machinery given on hire
9. Fees received for technical services rendered
10. Income of a doctor from his clinic
11. Profit on sale of shares
12. Rent received from a let out shop
3. Ms Dimple has made following investments during the year.

LIC premium on self Rs.25000

PPF Rs.50000
Repayment of housing loan Rs.100000
Payment to HDFC pension fund Rs.15000
Medical insurance premium for self, spouse and children Rs.30000
Medical insurance for parents Rs.20000
Interest on education loan taken for daughter : Rs.20000

Determine the amount of deduction u/s 80

1. Aman declares the following income for the y.e. 31.3.24. Determine total
income and tax liability

A. Revenues from business 18.00 lacs

Allowable expenses 11.00 lacs

B. Rent from leased property 5.00 lacs

Interest on loan for above 1.50 lacs
Principal amount repaid 0.50 lacs

C. Interest on debentures 0.60 lacs ( TDS Rs. 3000/- )

Dividend from Indian company 0.55 lacs
Winnings from lottery 2.50 lacs ( TDS Rs. 0.75 lacs )

Aman has invested Rs.70000 in a PPF A/c during the year.

2. Shruti declares the following income for the year 2023-24:Determine total income
and tax liability.

A. Salary received during the year Rs..10.00 lacs ( TDS Rs.20000 )

Car with driver from her employer
Laptop worth Rs 30000 from her employer.

B. Sale of gold jewellery during the year : Rs.4.50

( purchased in 2008-09 for Rs.2.50 lacs )
Sale of shares in L&T during the year : Rs. 3.50 lacs
( purchased in 2017-18 for Rs. 0.75 lacs- STT paid )

C. Interest on bank deposits : Rs.0.80 lacs ( TDS Rs.8000 )

D. She makes the following investments during the year :

Premium on LIC policy on self Rs.10000
Contribution to RPF : Rs.40000
Contribution to PPF : Rs.50000
Mediclaim premium : Rs.5000
3. Ms A submits the following data
1. Income from profession 500000
2. Interest on Post office deposits 3000
3. Long term capital gains on sale of land 45000
4. Dividends from Indian company 2000
5. Interest on notified Govt. securities 5000
6.Interest received on fixed deposits with bank 8980
7. Dividend from cooperative society 1000

She has incurred the following expenses

1. Payment to LIC pension fund 12000
2. Repayment of housing loan ( including interest Rs.15000 ) 65000
3. School fees for daughter 10000
4. Medical insurance –
Self 3000
Spouse 3000
Grandmother ( 75 yrs ) 5000
Cousin brother 2500
5. Subscription to PPF 30000
6. LIC policy premium on grandfather’s life 10000
Compute net taxable income and tax payable. Ms A submits the following data
 Ms. Joshi is employed with a salary of Rs.40000 p.m. Other
allowances are : Conveyance allowance –Rs.500 p.m ( Actual spent –
Rs.4000 in the year ), Lunch allowance : Rs.400 p.m, Fixed medical
allowance : Rs.1200 p.m, Bonus ; Rs.15000 in the year, HRA :
Rs.20000 p.m ( Actual spent : Rs.20000 p.m).TDS deducted from her
salary – Rs3000

The following details are available w.r.t other incomes and investments
Rental income from a property in Pune – Rs100000
Sale of gold jewellery for Rs250000 ( purchased in 2001-02 for
Rs.50000 )
Sale of equity shares in Infosys : Rs.600000 ( purchased in 2021-22 for
Rs.200000)
Interest on Govt. securities –Rs.19000 (gross) and intrest on FD –
Rs.20000(gross) TDS @10% is deducted from interest incomes
 Contribution to Jeevan Akshay Annuity plan of LIC – Rs10000
 Contribution to RPF – Rs12000
 Medical Insurance premium – Rs2500 paid by cheque.
 Donation to Maharashtra CM Relief Fund – Rs1500
 Medical expenditure for her treatment ( specified illness ) – Rs50000 . Insurance
company reimbursed only Rs.31000
 Tuition fees of her son – Rs15000
 LIC premium for her dependant mother – Rs.5000
 Her brother gifted her Rs.51000 during the year.
 TDS deducted from her salary – Rs3000