Gross Total Income(GTI) [Section-80B (5) ] : Defination under I.Tax

Section 14 of the Act provides that for the purpose of charge of Income tax and computation of total income, all incomes shall be classified under following five heads of income

(i) Income under the head “Salaries”.

(ii) Income under the head “House Property”.

(iii) Income under the head “Profits and gains of Business or Profession”.

(iv) Income under the head “Capital Gains”.

(v) Income under the head “Other Sources”.

After aggregating income under various heads (Duly applying clubbing provisions), losses are adjusted and the resultant figure is called “Gross Total Income” (GTI). ‘Gross Total Income’ may also be understood as the total income of an assessee before making any deduction under chapter VIA i.e., undersection 80C to 80U of the Act. Thus,

G. T. I. = Salary Income + House Property Income + Business or Profession Income+ Capital Gains + Other Sources Income + Clubbing of Income - Set-off of Losses

Total Income [Section 2(45)]
‘Total income’ means the total amount of income referred to in section 5, computed in the manner laid down in this Act. In other words, ‘Total Income’ means income remaining after allowing deductions under Chapter VIA (i.e., U/s 80C to 80U) from Gross Total Income. It is important to note that income tax is charged on total income at prescribed rate(s).

Rounding off of Total Income [Section 288A]
Total income or total taxable income of the assessee shall be rounded-off to the nearest multiple of 10, i.e., if the last figure in the total income is five or more, it would be raised to the next higher multiple of 10 and if the last figure of total income is less than five, the same shall be reduced to lower amount which should be a multiple of ten.

Rounding off of Tax [Section 288B]
As per the Taxation Laws (Amendment) Act, 2005, (w.e.f. July 13, 2006) the amount of tax payable including tax deductible at source; advance tax, interest, fine, penalty, the amount of any refund etc. shall be rounded to the nearest rupee ten, i.e., last figure of rupee five or above shall be raised to rupee ten whereas if the last figure is upto rupee four and nintynine paisa, it shall be ignored.
More Topics.. @ Tax Concept
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Income Deemed To Be Received In India under I.Tax Act.
Income Which ‘Accrues’ Or ‘Arises’ In India under I.Tax Act.
[Section 9(1)(i)] - Income Arising From Business Connection In India
Income from any property held in India and assets or sources of income located in India
Income from transfer of capital assets situated in India
[Section 9(1)(ii)] - Salaries earned in India
[Section 9(1 )(iii)] - Salaries For Government Service Outside India
[Section 9(1)(iv)] - Dividend paid abroad by Indian Company
[Section 9(1 )(v)] - Income By Way Of Interest
[Section 9(1)(vi)] - Income By Way Of Royalty
[Section 9(1 )(vii)] - Income By Way Of Fees For Technical Services
Agricultural Income [Section 2(1A)] - Definition under I.Tax
Assessment Year [Section 2(9)] - Definations under I.Tax.
Constitutional Provision Governing Taxation in India
Gross Total Income [Section-80B (5) ] - Definations under I.Tax.
Heads of Income [Section-14 ] - Definations under I.Tax.
Income is Taxed in the same Year in which it is earned
Income [Section 2(24)] - Definations under I.Tax.
Person [Section 2(31)] - Definations under I.Tax.
Previous Year [Section 2(34) r.w. Section 3] - Definations under I.Tax.
Sources Of Law Relating To Income Tax
Taxes to be imposed only by Authority of Law
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