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

Ans. Total Income is the income on which tax liability is determined. It is necessary to compute total income to ascertain tax liability. section 80C 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 80U)	(XXXXX)
Total Income (i.e., taxable income)	XXXXX

Note : Inter source losses, inter head losses, brought forward losses, unabsorbed depreciation, etc., (if any) will have to be adjusted (as per the Income-tax Law) while computing the gross total income.

Note: If the eligible assessee has opted for concessional tax regime under section 115BAA, 115BAB, 115BAC, 115BAD and 115BAE the total income of assessee is computed without claiming specified exemptions or deductions: