COMPUTATION OF TOTAL INCOME AND TAX LIABILITY OF AN INDIVIDUAL IN INDIA

AUTHOR – JAYESH MITTAL, LLM SCHOLAT AT AMITY UNIVERSITY, NOIDA

BEST CITATION – JAYESH MITTAL, COMPUTATION OF TOTAL INCOME AND TAX LIABILITY OF AN INDIVIDUAL IN INDIA, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 5 (4) OF 2025, PG. 1095-1104, APIS – 3920 – 0001 & ISSN – 2583-2344.

ABSTRACT

The Indian taxation system, governed by the Income Tax Act, 1961, aims to collect taxes from individuals, businesses, and corporations to fund government expenditures. The computation of an individual’s total income and tax liability is a multi-step process that involves determining different sources of income, applying exemptions, and calculating deductions. With the introduction of the new tax regime and several amendments over the years, understanding how to accurately compute tax liabilities has become crucial. This paper delves into the various aspects of income computation for individuals, explores the available deductions and exemptions, and explains the tax liability calculation process, thus providing a comprehensive overview for taxpayers in India.