How to Compute Your Income Tax Step-by-Step

Tax Pro
Tax Pro

Filing taxes is simpler when you understand how to compute your total tax liability.

Step-by-step guide:

  1. Gross Total Income
    Add income from all heads: Salary + House Property + Capital Gains + Other Sources + Business/Profession

  2. Less: Deductions under Chapter VI-A
    Use sections like 80C (PPF, ELSS), 80D (Health Insurance), 80TTA (Savings Interest)

  3. Net Taxable Income
    GTI - Deductions = Taxable Income

  4. Apply Tax Slabs
    Calculate tax using the applicable slab rates (Old/New regime)

  5. Add: Surcharge + Cess
    Surcharge (if income > ₹50 lakh) + 4% Health & Education Cess

📄 Our tool automates this entire process using your ITR JSON data.