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  PROCEDURE FOR COMPUTATION OF TAX LIABILITY Step 1: Compute taxable income under each head of income and then add all of them to arrive at GROSS TOTAL INCOME Step 2: Reduce deductions from Gross total income u/80   c,80CCC,80CCD,80D,80DD,80DDB,80E,80EEA,80EEB,80G,80GG,80GGC,80GGA,80RRB,80RB,80TTA,80TTB ANDN80U Step 3:                        Compute tax on income at the rates applicable Step 4:             Add Surcharge if the income Exeeds Rs.5 lakh Step 5             Add Health and Education Cess at 4% of Total Tax     TAX RATES Income Rate Tax on LTCG- if Not Indexed -           If indexed 20% 12.5% Tax on STCG   ...
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Tax Liability with Tax Rebate 87

Tax Liability with Tax Rebate 87 If the Net income is below Rs.5,00,000,   Rebate u/s 87 will be Rs.12,500 or Tax whichever is less Ex.3: Margam Publication 1.Shri Subramanian, a salaries employee, provides the following details of his income for the assessment year 2025-26.Determinehis tax liability   Rs. Basic Salary Dearness Allowance(forming part) Special Allowance Conveyance Allowance Interest on debenture of a Ltd. Company Interest on Co-operative debentures Dividend from a   Cooperative societies Interest on Govt. Societies  Income from house property(Computed) 1,00,000 7,000 8,000 5,000 10,000 6,000 4,000 5,000 3,00,000 Solution: Computation of Net Income and Tax Liability for the A.Y.2025-26       1.INCOME FROM SALARY Basic Salary DA Special Allowance Conveyance ...
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