Understanding Tax Computation Report
A tax computation report is a summary of your tax return. It is divided into four main sections:
- Personal details - Name, PAN, email, etc.
- Income tax return details - Return type, regime, filing date, acknowledgment number.
- Tax computation summary - Overview of income and tax computation
- Computation of income- Detailed breakdown of taxable income, losses, and tax liability
Let's understand the Computation of Income
Here's a snippet of the computation of income
Detailed Breakdown of Your Tax Computation Report
| Particulars | Meaning |
|---|---|
| Total Head-wise Income | Taxable income from all sources for the financial year |
| Losses Adjusted | Current year and brought forward losses set off against taxable income |
| Carry forward losses | Unutilized losses carried forward to future financial years. Lapsed losses are not included here |
| Gross Total Income | Computed as the difference between total head-wise income and losses adjusted |
| Total Chapter VI-A Deductions | Includes deductions under sections 80C, 80D, 80CCD(2), and others |
| Total Income | Calculated as Gross Total Income minus Chapter VI-A deductions |
| Long-Term Capital Gains Exemption | This highlights exemption on long-term capital gains u/s 112A, up to ₹1,00,000 |
| Exempt Other Income | Total exempt income under income from Other Sources |
| Tax Payable | Tax liability computed at slab rates and special rates |
| Rebate u/s 87A | If your total income falls below a certain threshold, a rebate under Section 87A is automatically applied, reducing your tax |
| Tax Payable after Rebate | Net tax payable after considering the rebate |
| Surcharge & Cess | Surcharge is applied on tax payable; health and education cess is applied on the total of tax payable and surcharge |
| Total Tax and Cess | The sum of tax payable, surcharge, and cess |
| Relief u/s 89 | Tax relief on salary arrears income that results if there is any additional tax liability |
| Interest & Penalty | Includes interest on delayed tax payments, late filing interest, and fees |
| Total Tax Payable | The final tax liability after considering all additions and deductions |
| Total Taxes Paid | Includes tax credits i.e. TDS, TCS, advance tax, and self-assessment tax |
| Tax Dues/ Refund | The difference between total taxes paid and total tax payable, showing either a refund or outstanding tax due |
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