ITR TERMS Flashcards
Part VII, Line 3 on page 4 of BIR Form No. 1701 (Annual Income Tax Return for Individuals including Mixed Income Earners)
“Total Amount Payable.” This section is where the taxpayer indicates the total amount of income tax due, including any penalties, surcharges, or interest that may apply.
Part VII, Line 4 on page 4 of BIR Form No. 1701 (Annual Income Tax Return for Individuals including Mixed Income Earners)
refers to “Less: Total Tax Credits/Payments.” This section is where the taxpayer subtracts the total tax credits and payments they have already made from the total amount payable, as calculated in the previous line. This helps determine the final amount that the taxpayer either needs to pay or the refund they are entitled to receive.
Part VII, Line 5 on page 4 of BIR Form No. 1701 (Annual Income Tax Return for Individuals including Mixed Income Earners) refers to the “Net Tax Payable (Overpayment)
refers to the “Net Tax Payable (Overpayment). the taxpayer calculates the difference between the total amount payable (Line 3) and the total tax credits/payments (Line 4). This will show either the net tax payable (if the amount in Line 3 is greater than Line 4) or the overpayment (if the amount in Line 4 is greater than Line 3)
Part V, Schedule 3A, Line 24 on page 2 of BIR Form No. 1701 (Annual Income Tax Return for Individuals including Mixed Income Earners)
refers to the “Tax Due” for a specific source of income. In this section, the taxpayer indicates the amount of tax due based on the specific income source detailed in Schedule 3A. This line captures the computed tax liability for that particular income after applying the relevant tax rates and allowable deductions.
Part V, Schedule 4, Line 15 on page 3 of BIR Form No. 1701 (Annual Income Tax Return for Individuals including Mixed Income Earners)
refers to “Total Income Tax Due”. This line represents the total income tax liability before applying any tax credits or payments.
