Gross Total Income (GTI) : Gross Total Income or GTI is the aggregate income earned from all heads of income, after giving effect of clubbing of income and set-off or carry forward of losses.
There are 5 heads of Income :
(i) Salary , (ii) House Property (Rental Income), (iii) Business and Profession, (iv) Capital Gains, (v) Income from Other Sources
Total Income (TI) : Total Income or TI is the income of an assessee on which TAX is calculated. It is the income after substracting DEDUCTIONS from Gross Total Income.
|Gross Total Income|
|Less : Deductions under chapter VI-A of Income Tax (i.e. deduction under Sec 80C to 80U)|
Lets understand with a Comparison Chart :
|Basis of Comparison||Gross Total Income||Total Income|
|Meaning||Gross Total Income is the aggregate income of a person, arrived after adding up income from all the five sources.||Total Income refers to that income of the assessee on which the tax liability is calculated.|
|Deductions||Income before making deductions under Chapter VI-A||Income after making deductions under Chapter VI-A|
|Tax||Tax is not levied on this income.||Tax is levied on this income.|