Understanding the Applicable Tax Structure

• Identify the correct tax rate applicable to the company based on its turnover and chosen tax regime.
  
• Consider the regular tax regime or concessional rates under section 115BAA or 115BAB.
  
• Verify eligibility and conditions for the selected tax structure.
  
• Include surcharge and health and education cess in the tax rate.
  
• Ensure consistency with the provisions of the Income-tax Act, 1961.
  

Determination of Taxable Income

• Start with the net profit as per the profit and loss account.
  
• Add back disallowed expenses and incomes not credited to profit and loss.
  
• Deduct exempt incomes and allowable expenses not debited in the books.
  
• Adjust for brought forward losses and depreciation as permitted.
  
• Arrive at gross total income before deductions under Chapter VI-A.
  

Computation of Total Tax Liability

• Apply the correct rate of tax on the taxable income.
  
• Compute surcharge based on the level of taxable income.
  
• Add 4 percent health and education cess on the total of tax and surcharge.
  
• Consider Minimum Alternate Tax if applicable to the company.
  
• Arrive at the total tax payable for the financial year.
  

Adjustment of Prepaid Taxes

• Deduct advance tax paid in four instalments during the financial year.
  
• Account for TDS and TCS credits available in Form 26AS.
  
• Include self-assessment tax paid before filing the return.
  
• Verify tax credits against challans and online tax statements.
  
• Compute net tax payable or refund due.
  

Finalization and Reporting

• Present the computation in a structured format with supporting schedules.
  
• Match the computed tax figures with Form ITR-6 before submission.
  
• Ensure alignment with financial statements, audit reports, and disclosures.
  
• Maintain supporting documents and calculations for verification.
  

Submit the final computation along with the income tax return.