please distinguish between gross total income and total income under income tax act 1961.
Following are differences between gross total income and total income,
1) Deductions:
Gross total income is calculated before applying the deductions under chapter 6A. while if deduct these deductions from gross total income then we get total income. i.e.
Total income = gross total income – deductions
2) Tax charge:
Tax is charged on total income not on gross total income hence total income is also called taxable income.
3) Assessment:
Gross total income is assessed under all five heads while total is assessed for tax obligation.
4) Round off:
Total income is round off to nearest 10 while it is not applicable on gross total income.
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