New Delhi: Finance Minister Nirmala Sitharaman tabled the Economic Survey 2020-21 in Parliament on Friday, two days before the presentation of Union Budget (on February 1).
With just two days remaining for the Union Budget to be presented in the Parliament, certain terms and jargons needs a revision for the taxpayers. One such popular jargon we shall be discussing in the Budget 2021 classroom is gross total income and total income.
What is gross total income and total income and what is the difference between the two?
Total Income is the income on which the income tax liability is determined. It is necessary to compute total income to ascertain the tax liability. As per Section 80C to 80U, that 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 minus Deductions (under section 80C to 80U) is equal to Total Income (TI). Total income can also be understood as taxable income.
However, you must note that 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.
Also, if the eligible assessee has opted for concessional tax regime under section 115BAA, 115BAB, 115BAC and 115BAD, the total income of assessee is computed without claiming specified exemptions or deductions.
In other news, the Budget Session began today with an address by President Ram Nath Kovind to the joint sitting of two houses of Parliament. The first part of the session will continue till February 15. The second part of the session will be held from March 8 to April 8.Rajya Sabha will function from 9 am to 2 pm and Lok Sabha from 4 pm to 9 pm with Zero Hour and Question Hour. Members of Parliament have been requested to undergo an RT-PCR test against COVID-19 before the start of the Budget session.