GROSS TOTAL INCOME AND

TOTAL INCOME

NAME – MANAN PARMAR

ROLL NO. – 24
CLASS – (TY)BBA-ITM
WHAT IS GROSS TOTAL INCOME?

 Gross total income (GTI) is the sum of incomes computed under the five heads of
income and other sources after applying clubbing provisions and making
adjustments of set off and carry forward of losses.
 Gross total income is arrived at when your earnings from all these five heads of
income are taken together.
 GTI = Salary Income + House Property Income + Business or Profession Income
+ Capital Gains + Other Sources Income + Clubbing of Income - Set-off of
Losses
WHAT ARE THE FIVE HEADS OF
INCOME?
 According to Section 14 of the Income Tax Act 1961, the income of a person or
an assessee can be categorized under these five heads:
i. Income from Salaries
ii. Income from House Property
iii. Income from Profits and gains of Profession or Business
iv. Income from Capital Gains
v. Income from Other Sources
WHAT IS TOTAL INCOME?

 Total Income is the amount of income that is subject to taxation, after all
allowable deductions or exemptions have been subtracted from the Gross Total
Income.
 The income arrived at after claiming all allowable deductions from Gross Total
Income is known as Total Income.
 A deduction under chapter VIA is provided from Gross Total Income, to arrive at
Total Income or Taxable Income.
 Deductions are 80C, 80CCC, 80CCD, 80CCF, 80CCG, 80U.
 Total Income = Gross Total Income – Allowable Deductions
 COMPUTATION OF TOTAL INCOME
Particulars Amount
1. Salaries ***
2. Income from House Property ***
3. Profits and gains of Profession or ***
Business
4. Capital Gains ***
5. Income from Other Sources ***
Gross Total Income ***
Less: Deduction under section 80C to 80U ***

Total Income ***

BASIS FOR GROSS TOTAL Total Income (TI)
COMPARISON INCOME (GTI)
Meaning Gross Total Income is the Total Income refers to that
aggregate income of a person, income of the assessee on
arrived after adding up income which the tax liability is
from all the five sources. calculated.

Deductions Income before making Income after making

deductions under Chapter VI- deductions under Chapter
A VI-A

Tax Tax is not levied on this Tax is levied on this

income. income.
THANK YOU