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Explain the procedure for computing the Total Income of an assesses. |
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Answer» The procedure for computing the Total Income of an assesses is as follows: Step 1: Compute the income of an individual under 5 heads of income on the basis of his residential status Step 2: Income of any other person, if includible under sections 60 to 64, will be included under respective heads. Step 3: Set off of the losses if permissible, while aggregating the income under 5 heads of income. Carry forward and set off of losses of the past years, if permissible, from such income. Step 4: The income computed under step 1 to 3 is known as Gross Total Income from which deductions u/s 80 C to 80 U will be allowed. However, no deduction under these sections is allowed from STCG u/s 111A, any LTCG and winning from lotteries etc., though these incomes are part of Gross Total Income.. Step 5: The balance income after allowing the deductions is known as total income which will be rounded off to the nearest Rs.10.. |
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