What is the difference between gross total income and total income?

Total Income is the income on which tax liability is determined. It is necessary to compute total income to ascertain tax liability .Section 8​0C to 80U provides certain deductions which can be claimed from Gross Total Income (GTI). After claiming these deductions from GTI, the income remaining is called as  Total Income. In other words, GTI less Deductions (under section 80C to 80U) = Total Income (TI). Total income can also be understood as taxable income. Following table gives a better understanding of the difference between GTI and TI :

 

Computation of gross total income and Taxable Income

Particulars Amount
Income from salary XXXXX
Income from house property XXXXX
Profits and gains of business or profession XXXXX
Capital gains XXXXX
Income from other sources XXXXX
Gross Total Income XXXXX
Less : Deductions under Chapter VI-A (i.e. under  Section 80c To 80 U) (XXXXX)
Total Income (i.e., taxable income) XXXXX

 

Visit www.papertax.in and speak to your dedicated tax adviser for any further queries with regards to Income tax & G.S.T. matters, or download paper tax mobile application from Google play store to stay updated for any legal updates. You can also contact us on our help desk 844844 8821.

 

Was this post helpful?
Let us know if you liked the post. That’s the only way we can improve.
Yes0
No0
Powered by Helpful

Leave a Reply

Your email address will not be published. Required fields are marked *

Call Now Button