Computation Sheet of Income Tax (Must Know Information)

The taxpayers need the computation sheet of income tax to analyze their taxes and investments. After filing an ITR, the taxpayer is required to get the acknowledgment of their paid taxes by ITR-V. Once the taxpayer has the acknowledgment number of the ITR filed they can download the computation sheet from the official e-filing portal.

However, if the taxpayer has filed their ITR using any other income tax calculation tools, they can download the income tax computation sheet from the bank or the app itself. 

This article sheds some light on the most asked questions of taxpayers about the income tax computation sheet.

What Is Tax Computation Sheet?

As the name suggests, the income tax computation sheet is the record of the ITR submitted by the taxpayer. It contains all the financial data of the taxpayer for a financial year. The taxpayers can download it to re-check the data after filing the ITR. 

What Is Income Tax Computation Statement?

In simple words, the income tax computation statements have the details of your sources of income, tax liability, and the tax paid for all the sources of income in an assessment year which has been previously paid through the ITR and is acknowledged by the IT Department.

What Is the Tax Computation Worksheet Used For?

This document is widely accepted by all financial institutions and banks. The banks ask for the tax computation worksheet when a person applies for a credit card or a VISA or in places where ITR is required as a document to be submitted.

1. So, you will be asked to submit an ITR computation sheet if you have applied for a bank loan for a car, house, or any other reason;
2. When you apply for a Credit Card. The bank will evaluate your paying back and expense limit on the credit card on the basis of your income. 
3. When you apply for a VISA, the country likes to know the financial status of the person entering their country.
4. You can also be asked to present your ITR for scholarships, and admissions to institutions.

How Do I Find My Income Tax Computation Sheet?

The income tax computation sheet can be accessed online through the e-filing portal. The assessee can download the filled ITR pdf file, which contains the income tax calculations/statements. 

To access the income tax computation sheet the assessee can follow the steps given below.

1. Visit the official website of the Income Tax Department of India and click on the login option
2. Enter your Login details- PAN and password, and then hit the submit button.
3. Under the My Profile menu, tap on response to outstanding tax demand.
4. A window will appear showing the outstanding tax demands.
5. Click on the download button next to the file, to download it in PDF format. 

What Is the Format of Computation of Taxable Income in Excel?

A wide variety of Income-tax computation formats are available online. The taxpayers can choose as per their need, whether they want it in Excel sheet format or Word document format.

Irrespective of the format that you choose, you will have to enter the following data in the computation of taxable income in Excel

1. Your personal information: Name, email ID, phone number, bank details, assessment year, etc.
2. Your sources of income under all heads of income: capital gains, profits/dividends, salary, agriculture income, etc.
3. All the deductions you claim in an assessment year under various sections of the IT Act.
4. Tax liability and challan details.

Can We Download the ITR Computation?

The ITR computation sheet or statement or acknowledgment can be downloaded directly from the e-filing portal. Just use the steps given below to get to the ITR-V download.

1. First, log in to your account on the e-filing portal.
2. Now, head to the View Returns/Forms options under my profile menu.
3. There, click on Income Tax Return and select the assessment year from the drop-down menu.
4. Then, hit the submit button. 
5. Click on the acknowledgment number of the ITR-V you want to download. 
6. The download of the ITR-V will start.

Note: to open the PDF file you will be required to enter the password sent to your email ID, as it is password protected.

FAQs: Computation Sheet of Income Tax

How do you prepare income tax computation?

The process of computation of income tax is simplified by the availability of apps and tools. Anybody can download the app Aayakar Setu app for an easy tax computation experience or can also use the income tax calculator tool available on www.incometax.gov.in. 

What are the steps of computation of total taxable income?

Here are the steps for the computation of total taxable income-

1. Calculate your total earning or the gross total for all five heads of income.
2. Deduct any income which is tax-free.
3. Calculate the total deduction claimed in an assessment year.
4. Subtract the deductions from the gross total earning to get the net total income.
5. Look in the income tax slab rate to determine the tax slab applicable to your net total income.
6. Add the surcharge and health and education tax over the taxable income.

Conclusion

The computation sheet of income tax can be done with the help of the e-filing portal. The income tax department has made the process to access the ITR-V online. Any taxpayer can download their ITR computation sheet by logging on to their portal and downloading it. All the previously filed ITR sheets will be available. The assessee can select the ITR file they want to download in PDF format. 

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