Gross Total Income

What is Gross Total Income?

The gross total income meaning the total income earned by an individual before any deductions or exemptions are applied. The total income of an individual can be categorized into five heads, given below:

• Income from Salaries
• Income from House Property
• Capital Gains
• Profits and Gains of Business and Profession
• Income from Other Sources

How to Calculate Gross Total Income?

It is necessary to calculate the gross total income because it is the amount that you have to disclose while filing an income Tax Return. The deductions are also important to arrive at the total income or taxable income. There is a gross total income formula by which you can calculate GTI, and it is done by using its components.

G.T.I. = Salary Income+ House property income+ Business/Profession Income+ Capital Gains+ Other sources of income+ clubbed Income- Set off of loses

Components of Gross Total Income (GTI)

Here are a few components that contribute to the Gross Total Income:

• Income from Salary: This includes your regular salary, wages, bonuses, allowances, commissions, or any other type of income paid by the employer.
• Income from House Property: This category includes the income that comes from a property that you own and rent out.
• Income from Business or Profession: In this category, it includes the profits that you have earned in a business or by practicing a profession.
• Capital Gains: This category includes the profits that you made by selling the capital assets, like stocks, bonds, or real estate.
• Income from Other Sources: This is a broad category that includes the income from various sources such as interest earned on savings accounts, income from freelancing gigs, and dividend income from investments.
• Clubbed Income (if applicable): In some cases, the income earned by the family members is also included in your GTI under some specific laws.
• Set-off of Losses (if applicable): In some cases, you will be able to deduct the capital losses or business losses from your GTI.