Aggregation

Tax Glossary Definition

Aggregation

Aggregation – The method of computing total taxable income by combining earnings from all categories or heads, such as salary, business profits, property income, and capital gains. This approach ensures that overall income is taxed at the correct rate, reflecting the taxpayer’s full financial position.

Example: Salary of ₹6 lakh, rent of ₹2 lakh, and capital gains of ₹1 lakh are aggregated to form total income of ₹9 lakh for taxation.

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