Meaning of Gross Total Income in Income Tax

If you are earning money then filing Income Tax Return is a technical process that includes different types of Income, deductions, and many other things. There is a total of 5 head of Income under the Income Tax Act, the sum of all is called Gross Total Income.

Hereunder this post, we will understand the meaning of the term Gross Total Income under the Income Tax Act.

Gross Total Income

What is the meaning of Gross Total Income- In simple words, Gross Total Income (GTI) is the sum of Incomes computed under the five head of Income i.e. salary, house property, business or profession, capital gains, and other sources after applying to clubbing of Income and making adjustments of set-off and carry forward of losses.

Formula For Gross Total Income

The GTI can be calculated by using below mentioned formula-

GTI- Salary Income + House Property Income + Business or Profession Income + Capital Gain Income + Other Sources Income + Clubbing of Income – Set off of Losses.

What does GTI not include?

While calculating GTI one must sum up all of their income without reducing the amount for any tax-saving investments made under section 80C to 80U under the Income Tax Act, 1961.

Also Read- Meaning of Financial Year in India

Format of Gross Total Income

The format of GTI is given here under-

ParticularsIncome
Income From Salary (A)XXX
Income Under the Head House Property Income (B)XXX
Income From Business and Profession (C)XXX
Income From Capital Gains (D)XXX
Other Sources Income (E)XXX
Gross Total Income (A+B+C+D+E)XXXX

Also Read- Difference between Gross Total Income and Total Income

Some FAQs

  1. How do I calculate my Gross Total Income?

    Gross Total Income can be calculated with Salary Income + House Property Income + Business or Profession Income + Capital Gain Income + Other Sources Income + Clubbing of Income – Set off of Losses.

  2. What is the difference between Gross Total Income and Total Income?

    Gross Total Income refers to the total income computed under the five head of Income but Total Income is the result of GTI – Deduction u/s 80C to 80U of the Income Tax , 1961.

  3. Does Gross Income Include Tax?

    Gross Total Income is the sum of Incomes computed under the five head of Income i.e. salary, house property, business or profession, capital gains, and other sources after applying to clubbing of Income and making adjustments of set-off and carry forward of losses.

  4. What is not included in Gross Income?

    While calculating GTI one must sum up all of their income without reducing the amount for any tax-saving investments made under section 80C to 80U under the Income Tax Act, 1961.

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Disclaimer: The information contained in the above article are solely for informational purpose after exercising due care. However, it does not constitute professional advice or a formal recommendation. The author does not own any responsibility for any loss or damage caused to any person, directly or indirectly, for any action taken on the basis of the above article.

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Compiled by- CA Chirag Agarwal (Practicing Chartered Accountants)

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