TaxFinancial Glossary
Total Income
Definition
The final taxable income figure after subtracting all deductions under Chapter VI-A (80C, 80D, etc.) and exemptions from your gross total income. Tax is calculated on total income using the applicable slab rates. This is the number that appears on your income tax assessment order.
Why It Matters
Total income is what determines your actual tax liability and which slab you fall into. Many people confuse CTC, gross salary, and taxable income. CTC includes employer contributions and perquisites; gross total income is after subtracting exempt components; total income is after deductions. Each is different.