Following are the steps to Computation of total income and tax liability:

(i) Compute the income of an individual under 5 heads of income on the basis of his residential status. 

(ii) Income of any other person, if includible under section 60 to 64, will be included under respective heads. 

(iii) Set off of the losses if permissible, while aggregating the income under 5 heads of income. 

(iv) Carry forward and set off of the losses of the past years, if permissible, from such income. 

(v) The income computed as above will be Gross Total Income from which permissible deductions under section 80C to 80U are allowed. However, no deduction under these sections will be allowed from short term capital gain covered under section 111A, any long term capital gain and winning of lotteries etc., though these incomes are part of gross total income. 

(vi) The balance income after allowing the deductions is known as total income which will be rounded off to the nearest Rs. 10.

(vii) Computation of tax on such total income at the prescribed rates of tax and adding education cess and secondary and higher education cess thereon and allowing relief under section 89, if any. 

(viii) Deducting the TDS and advance tax paid for the relevant assessment year. The balance is the net tax payable is to be rounded off to the nearest Rs. 10. This tax has to be paid as self-assessment tax before submitting the income tax return.