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ITR-3 AY 2020-21 Individual: Computation of Total Income, Surcharge, Interest, and Tax Payable

In this edition of Income Tax Return (ITR) AY 2020-21, we are going to discuss ITR-3 AY 2020-21: how an Individual can calculate their Total Income, Tax Liability including Surcharge, Interest under section 234A, 234B, and 234C having professional Income, House property Income, and Other Income.

Illustration

Mr. A has earned the following income for the year ended 31st March 2020. Determine the Total Income and the tax payable for the financial year 2019-20. ITR-3 AY 2020-21

  • Income from house property – Rented property Rs.4,44,000/- and has paid house tax on the same for Rs. 17,880/-
  • Interest on a home loan – Rs.3,29,000/-
  • Income from Profession – Rs. 1,33,16,580/-
  • Income from saving bank account(s) – Rs. 1,05,000/-
  • The life insurance premium paid for Rs. 2,51,210/-
  • Tuition Fees paid for Child 1 – Rs. 3,65,000/-
  • Premium paid for medical Rs. 76,500/-
  • Dividend earned Rs. 12,152/-
  • Interest earned on PPF – Rs. 1,85,000/-
  • Advance tax paid on the following dates
15/06/2019Rs. 8,00,000
15/09/2019Rs. 8,00,000
15/12/2019Rs. 8,00,000
  • TDS for the financial year 2019-20 – Rs. 19,25,000/-

Computation of Total Income of Mr. A for the financial year 2019-20

Income from House Property (Chapter IV C)    -30716
      
Income from House property444000    
Annual Rental Value u/s 23  444000  
Less:     
House Tax Paid17880    
   17880  
   426120  
Less:     
Deduction u/s 24(a)127836    
Interest329000    
   456836  
   -30716  
      
Income from Business or Profession (Chapter IV D)    13316580
Income and Expenditure account Profession     
Income and Expenditure account  13316580  
Total  13316580  
      
Income from Other Sources (Chapter IV F)    105000
Interest from Saving Bank A/c  105000  
      
Gross Total Income    13390864
      
Less: Deductions (Chapter VI-A)     
u/s 80C     
L.I.P.251210    
Tuition Fee365000    
Total616210    
   150000  
u/s 80TTA (Interest from Saving Bank Account.)  10000  
u/s 80D (payment Rs. 76500/-)  25000  
     185000
Total Income    13205864
Round off u/s 288 A    13205860
Income Exempt u/s 10    197152

ITR-3 AY 2020-21: Deduction u/s 10AA,35AD, 80H to 80RRB (except sec.80P) not claimed hence AMT not applicable.

Computation of Tax payable, Surcharge, and Interest for AY 2020-21 (ITR-3)

Tax Due3774258
Exemption Limit :2,50,000 
Tax on (5,00,000 -2,50,000) = 2,50,000 @5% = 12500 
Tax on 5,00,001 To 10,00,000 = 5,00,000 @20% = 1,00,000 
Tax on 10,00,001 to 1,32,05,864 = 1,22,05,864 @30% = 36,61,759 
Total Tax = 3774259 
  
Surcharge @15%566139
 4340397
Health & Education Cess (HEC) @ 4.00%173616
 4514013
T.D.S./T.C.S1925000
 2589013
Advance Tax2400000
 189013
Interest u/s 234 A/B/C11,340
u/s 234A (5 Month) Rs. 9,450 
u/s 234C Rs. 1,890 [0+0+0+1890] See Note1 below 
 200353
Round off u/s 288B200350
Deposit u/s 140A200350
Tax Payable0

Interest calculated up to December 2020, Due Date for filing of Return July 31, 2020

Due date extended to 31/12/2020 88/2020/ F. No. 370142/35/2020-TPL DT. 29.10.2020

As per the notification, In case tax payable exceeds Rs. 1.00 Lac, due date for the purpose of interest u/s 234A has not been extended.

How to calculate Interest u/s 234A, u/s 234B, u/s 234C and Fee u/s 234F

Note 1:

Interest calculation u/s 234C

S. No.Installment PeriodTotal Tax DueTo Be Deposited (In %)To Be Deposited (In Amount)Deposit AmountRemaining Tax Due(Round off in 100 Rs.)Int Rate (In %)Interest
1.First (Up to June)25,89,01315.003,88,3528,00,000-4,11,60030
2.Second (Up to Sep)25,89,01345.0011,65,05616,00,000-4,34,90030
3.Third (Up to Dec)25,89,01375.0019,41,76024,00,000-4,58,20030
4.Fourth (Up to March)25,89,013100.0025,89,01324,00,0001,89,00011890
 Total      1890

Note 2:

Details of Exempted Income

S.No.ParticularsAmount (Rs.)
1Interest on PPF1,85,000
2Dividend From Shares12,152
 Total1,97,152

Know more about:

Senior Citizen having Interest Income only for AY 2020-21

Individual Income Tax Computation with Interest u/s 234B and u/s 234C AY 2020-21

ITR-1 AY 2020-21 using Excel Utility

How to pay Income Tax Challan No.280/ITNS 280 Offline

Import Schedule 112A in Java Utility AY 2020-21 from excel

CA Devesh Thakur

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