Interview Questions.

Q1. How To Compute The Total Tax Liability?

After ascertaining the overall income, i.E., income at risk of tax, the following step is to compute the tax legal responsibility for the 12 months. Tax liability is to be computed via making use of the quotes prescribed in this regard. For quotes of tax, refer "Tax Rate" phase. Following desk will assist in know-how the manner of computation of the entire tax legal responsibility of the taxpayer. 

Computation of general income and tax liability for the 12 months:-

Particulars Amount

Income from salary XXXXX

Q2. What Is The Difference Between Gross Total Income And Total Income?

Section 80C to 80U provides certain deductions which can be claimed from Gross Total Income (GTI). After claiming those deductions from GTI, the income last is called as Total Income. In different words, GTI much less Deductions (below segment 80C to 80U) = Total Income (TI). Total earnings can also be understood as taxable earnings. Following desk gives a better information of the distinction among GTI and TI

Q3. What Is Marginal Relief And How It Is Computed?

The concept of marginal comfort is designed to provide rest from levy of surcharge to a taxpayer where the overall earnings exceeds marginally above Rs. 1 crore or Rs. 10 crore, because the case may be. Thus, while computing surcharge, in case of taxpayers (i.E. Individuals/HUF/AOP/BOI/artificial juridical character) having total income of extra than Rs. 1 crore, marginal remedy shall be to be had in the sort of manner that the net quantity payable as profits-tax and surcharge shall now not exceed the whole amount Source