computation of Income- All in one

Broad mode of computation of Income

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