How to Compute Total Income

Before filing return in the income tax department a statement showing computation of total income is to be submitted along with the ROI. Here is given a brief presentation of  Computation of Total Income:

 

      Particulars

a)      Income from Salaries

Basic Salary                                         xx

Taxable Allowances                              xx

Taxable Value of Perquisites                 xx

          Gross Salary                                           xx

Less : Entertainment Allowance             xx

           Professional Tax                                    xx                     xx

 

 b)      Income From House Property

Gross Annual Value                              xx

Less: Municipal Taxes paid                     x

            Annual Value                            xx

Less: Deduction u/s 24              xx                                 xx

 

 c)      Profits and Gains of Business

or Profession

      Net Profit as per P/L A/c                      xxx

      Add: Amount shown as expenses

               but not allowed                              xx

                                                                  xxx

      Less: Expenses allowed but not

                claimed.                                        xx      

                                                                  xxx

      Add: Incomes not shown in the P/L

               A/c but taxable                              xx

                                                                  xxx

      Less: Incomes shown in the P/L

               A/c but not taxable                        xx                               xxx

 

d)      Capital Gains

Sale Consideration                                xxx

Less: Expenses on transfer                      xx

Net Sale Consideration             xxx

Less: Cost of acquisition/improve.           xx

            Capital Gains                            xxx

Less: Exemptions (if any)                        xx                               xxx

  

e)      Income From Other Sources                                                       xx

 

Gross Total Income                                                               xxx

Less: Deduction u/s 80CCC to 80U                                            xx

            Total Income                                                              xxx

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2 Responses to “How to Compute Total Income”

  1. arun kumar Says:

    How to compute the income from other source and file the income tax return please guide me

    • Viviek Says:

      All the income that is not taxable under any other head like interest income, taxable gifts, family pension, lottery income, etc comes under Income from Other Sources head.
      Tax return is filed annually in the applicable form ITR 1 to ITR 7. You just have to choose which is the applicale form for for u. Fill it and submit it online or in the Income Tax Department where your jurisdiction falls.

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