What is the difference between the Gross Total Income and Total Income?
Gross Total Income (GTI) is the
sum of all the incomes received by the taxpayer from various sources. Certain
deductions stated under section 80C-80U are allowed by the I-T Act to reduce the taxpayer's taxable income. After deductions, the Total Income (TI) is calculated to ascertain the tax liability. Thus GTI – Deductions = TI.
Computation of GTI 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 80U)
|
(XXXXX)
|
|
Total Income (i.e., taxable income)
|
XXXXX
|
Note : Setting off of
losses, unabsorbed depreciation, etc., has to be adjusted (as
per the Income-tax Law) while computing GTI.
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