How to Prepare the Statement of Total Income

By | June 23, 2015

Preparing the income statement on your own is like a dream come true. Most of people only think about it and cannot make any attempt to prepare it. Preparing statement of total income in the very informative format is like achieving mile stone. This article will help you to prepare your income statement on your own.

Income Tax Act, 1961 have set out the various sections. Each section of the income tax act has to do something with the statement of total income. One has to have some knowledge about these sections to prepare the informative statement of total income. Section 14 of Income Tax Act has classified the heads of income as below;

  1. Earnings from salary and pensions
  2. Earnings from house property
  3. Earnings from Business and profession
  4. Earnings from Capital gains (both Long term and short term)
  5. Earnings from other/residual sources

Following is the simple format for statement of total income;

Statement of Total Income

 
Mr. ABC
Address
Status PAN AY Birth Date
Bank Name Branch A/c # IFSC/MICR Code
Heads of Income Amount (Rs.)
Earnings from Salary  
Earnings from House Property  
Earnings from Business or Profession  
Capital Gains Short Term Long Term  
Earnings from Other Sources  
Earnings of Any Other Person to be added  
Gross Total Income  
Less : Deductions under Chapter VI-A (i.e., under section 80C to 80U)  
Total Income  
Total Income rounded under section 288A (nearest to ten)  
Add : Agricultural Income  
Income claimed to be exempt from Income-Tax  
Tax Payable Normal Tax Special Tax  
Less: Rebate under Section 87A  
Add : Surcharge  
Add : Education Cess @ 2%  
Total Tax Payable with Surcharge/Education Cess  
Less : Rebate under sections 86, section 89, sections 90, 90A and 91(if any) (*)  
Less : Tax Deducted at Source  
Less : Advance Tax Paid  
Add : Interest u/s 234A 234B 234C  
Less : Self-Assessment Tax Paid  
Balance Tax Payable/Refundable  

Tax Schedule:

For resident individual (who is of the age below 60 years at any time during the previous year) the basic exemption limit of income is Rs.2,50,000/- for the current year.

TOTAL INCOME RATE OF TAX
Up to Rs.2,50,000/- NIL
Between Rs.. 2,50,001/- to Rs. 5,00,000/- 10% of total income above Rs.2,50,000/- + 2% Education Cess + 1% Secondary and higher education CessLess: Maximum tax rebate of Rs. 2,000/- for individual having total income up to or below Rs.5,00,000/-.
Between Rs.5,00,001/- to Rs.10,00,000/- Rs.25,000/- + 20% of income above Rs.5,00,000/- + 2% Education Cess + 1% Secondary and higher education Cess
Above Rs.10,00,000/- Rs.1,25,000/- + 20% of income above Rs.10,00,000/- + 2% Education Cess + 1% Secondary and higher education CessNote: 10% surcharge is applicable on total income exceeding Rs.1 Crore.

 

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