Tuesday, October 20, 2009

How to Calculate income tax of Individual

Calculation of income tax of individual is full based on the assessment which an assessee can do himself or take the help of CA or advocate. If you want to calculate your income tax liability by yourself , then . First of all calculate your different incomes in the following heads .
1. Calculate total incomes under the head of salary less deductions of gross salary according to current finance bill .
2. Calculate total rent earning .
3. Calculate total business or profession earning less expenses which are allow under income tax law 1961.
4. Calculate the income from capital gain . In this income we can include earning from sale of shares and debentures also .
5. Calculate any other income .

Now first deduct section 80 deduction and calculate pure income and calculate your tax under tax slab . and deduct after any rebate . After this you can deposit your tax to bank account by income tax challen and return can be deposited in income tax department .


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