What is the first step in computing tax liability after determining total income?

Round off total income to the nearest multiple of 10.

Fill in the blanks: The tax on long-term capital gains is calculated at ___%, while short-term capital gains on shares subject to STT are taxed at ___%.

20, 15

Explain the conditions under which a surcharge is applied to an individual's tax liability.

A surcharge is applied if the total income exceeds Rs. 10,00,000, with a rate of 10% on the amount exceeding this threshold.

What is the rate of Alternate Minimum Tax (AMT) imposed on individuals and corporations in India?

The AMT is imposed at a rate of 18.5%, increased to 19.055% after including education cess.

True or False: Individuals with an adjusted total income exceeding Rs. 20 Lac are liable to pay AMT.

False. AMT is not payable if the adjusted total income does not exceed Rs. 20 Lac.

How does the concept of marginal relief apply when calculating surcharge for tax liabilities?

Marginal relief applies to ensure that the surcharge does not exceed the difference between total income and Rs. 10,00,000.

Fill in the blanks: Education cess is applied at ___% for tax and ___% for secondary and higher education.

2, 1

What is the procedure if the tax payable under normal provisions is less than AMT?

The assessee must pay the AMT instead of the tax under normal provisions.

Short Answer: What is the effect of claiming profit-linked deductions on the computation of adjusted total income?

Claiming profit-linked deductions requires adding those deductions back to total income for AMT calculations.

Explain the importance of the ICAI Guidance Note in the context of AMT certification.

The ICAI Guidance Note outlines the responsibilities of chartered accountants in certifying the accurate computation of adjusted total income and AMT.

What is the computation process for determining the tax liability of an individual after assessing their total income?

Tax liability computation is complex.

• Round off total income.

• Divide into taxable parts.

• Apply surcharges and rebates.