Gross Total Income (GTI) [Sec. 122], Total Income (TI) [Sec. 2(108) read with section 122]
by Under the new Income tax Act, 2025, Gross Total Income (GTI) means the total income computed according to the provisions of the Act before making deductions under Chapter VIII. Section 122(10) specifically defines gross total income for the purpose of deductions. Thus, GTI represents the income arrived at after applying the provisions relating to computation of income, but before allowing deductions available under Chapter VIII.
The computation generally involves determining income from the applicable heads of income, such as salary, house property, business or profession, capital gains and other sources. Applicable adjustments and set off of losses are made according to the Act. The resulting amount is GTI.
Section 122(1) provides that eligible deductions specified in Chapter VIII are allowed from GTI while computing total income. Further, the aggregate deductions cannot exceed the GTI.
Formula:
GTI = Income computed under the Act before Chapter VIII deductions
Total Income (TI) [Section 2(108) read with Section 122]
Under the new Income tax Act, 2025, Section 2(108) defines Total Income as the total amount of income referred to in Section 5, computed in the manner laid down in the Act.
In practical computation, Total Income is obtained after allowing the eligible deductions under Chapter VIII from the Gross Total Income. Section 122 provides the mechanism for allowing these deductions.
Formula:
Total Income = Gross Total Income − Eligible deductions under Chapter VIII
For example, if GTI is ₹10,00,000 and eligible deductions are ₹1,50,000, the Total Income will be ₹8,50,000.
Thus, GTI is the income before Chapter VIII deductions, whereas Total Income is the amount after such eligible deductions.