When you liable to file ITR for any assessment year

When you liable to file ITR for any assessment year


Computation of Total Income and

Tax liability of an individual


Computation of total income need to

assess income tax under Income Tax Act 1961.

Computation of Total income we need all income earned during the previous year by a person which is taxable under Income Tax Act 1961.

Step.1 Compute total income of an individual from head of income (Section -14)

  1. Income from Salaries.
  2.  Income from house property.
  3. Profit and gain of business or profession.
  4. Capital gains.
  5. Income from other sources.

Income from salaries (Section 15 to 17)

 Income from salaries.

Less: Deductions allowable under the head salaries.

 Income from House property (Section 22 to 27)

Income from house property.

Less: deductions allowable under the head of house property.

Income from Profit and Gains of Business or profession (Section 28 to 44AD)

Income Business or Profession.

Less: Deduction’s allowable under the head Business or Profession.

Income from Capital Gains (Section 45 to 57)

Income from capital gains.

Less: Deductions allowable under the head capital gain.

Income other sources (Section 58 to 59)

Income from other sources.

Less: Deductions allowable under the head Income from Other Sources.

Step-2 Add Income of other person included in assesses total Income


A – less allowable Set off and carry forward of loss of relevant assessment year.

B- Less allowable set off and carry forward of past years loss.

Step-4 Income computed according above three step is known as gross total income

Step-5 Less deductions allowable under chapter VI A (Section 80 C to 80 U)

Main deductions commonly claim

Life insurance premium

Tuition fee

House loan Repayment (Principal amount)

Mutual Find investment

Fixed Deposit

Contribution to Provident Fund

Contribution to Public Provident Fund

Contribution to certain pension funds

Health Insurance


Note: Deduction under chapter VI A is allowable under old Tax Regime only

 Step: 6 Compute Income Tax on such total income   after step 5 at prescribed rate of income tax according to respective assessment year

Now there are two Income Tax Regime

 Income Rs. Old Income Tax Regime Deduction  under Chapter VI A is available New Income Tax Regime Deduction  under Chapter VIA is not available
 Up to  2,50,000 Nil Nil
 2,50,001 to  5,00,000 5% 5%
5,00,001 to 7,50,000 20% 10%
7,50,001 to 10,00,000 20% 15%
10,00,001 to 12,50,000 30% 20%
12,50,0001 to 15,00,000 30% 25%
15,00,001 30% 30%

 Who need to file Income Tax Return ?

According to section 139(1) requires that every person

(a) being a company or a firm, or

(b) being a person other than a company or a firm, if (i0 his income or (ii0 the total income of any other person in respect of which he is assesseable under the income  act during the previous year, exceeded the maximum amount which is not chargeable to income tax shall furnish a return of his income otr the income of such other person.

Income tax return must be furnish on or before the due date in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed.


Mr. A earned income Rs. 6,00,00 and Mr. B  5,00,000 both are laible to file  his income tax


Bsaic examption limit is Rs.2,50,000

Mean if  total income exceed Rs.2,50,000 during during the relevant previous  than need to file income tax return.

Now a assessee can file his  income  tax return  during the relevant  assessment year only.

If any assessee fail to file his return of his income  during the relevant assessment after that  want to  income tax return should meet with his area income tax officer. If income tax officer allow than such person  can file his pending income tax return .




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