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Calculation of Tax Liability for the Assessment Year 2018-2019 and 2019-2020



1.    Find out gross total income

 

2.    Less: Deductions under sections 80C to 80U —

 

3.    Find out net income [(1) (2)]

 

4     Divide the net income into the following —

      4.1.   Income subject to special tax rates
      4.2.   Remaining income subject to normal rates

 

5.   Find out income-tax on net income—
     5.1. Tax on income specified at the rates given

     5.2. Tax on remaining income at the normal rate

 

6.  Less Rebate under section 87A
[ Applicable in the case of a resident individual having net income not exceeding Rs. 3.50 lakh ]


7.  Income-tax after rebate under section 87A [ (5) - (6)]


8.  Add: Surcharge @0%, 2%, 5%, 7%, 10%, 12% or 15% of (7)


9.  Find out the total [(7)+(8) ]

10.  Add: Education Cess (EC) and Secondary and Higher Education Cess (SHEC) for the assessment year 2018-19 [3% of (9) ]

11. Add: Health and Education Cess (HEC) for the assessment year 2019-20 [ 4% of (9) ]

 
12. Find out the total [(9) + (10) or (9) + (11)]

13. Deduct :  Rebate under section 86, 89, 90, 90A or 91


14. Tax liability [(12)—(13)]


15. Add:  
Interest/penalty, etc.


16. Less:  Pre-paid Taxes [ i.e. Advance Tax, Self-Assessment Tax, TDS, TCS, MAT/AMT credit]


17. Tax payable [(14) + (15) (16)]

 

 
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