ITR- Computation of Tax Liability and Advance Tax

This test series is designed to explain the concept of Income tax, including the computation of total tax liability and the details of advance tax. The main objective of this series is to develop student's about professional skill in income tax filing. Through this series, you will learn how to prepare and generate a proper computation of tax liability and calculate Advance tax and per ITR requirements. 

Computation of Tax Liability:

Computation of tax liability means determining the total income tax payable for a financial year. It involves calculating income from all sources-salary, business, capital gains, and others-then deducting eligible exemptions and deductions under the Income Tax Act. After that, apply the relevant tax slab rates to find the final tax payable amount.

Advance Tax:

Advance tax refers to paying income tax in parts during the financial year, rather than at the end. It applies if the total tax liability exceeds 210,000 in a year. To calculate it estimate your total income, compute the tax payable, deduct TDS, and pay the balance as per due dates-June 15, September 15, December 15, and March 15.