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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