Gross Income and Taxes on Gross Income

Gross Income and Taxes on Gross Income – Gross income is the total income earned by an individual or business before any deductions, exemptions, or taxes are applied. It includes income from all sources, such as: Wages and salaries – earnings from employment Business or professional income – profits from commercial activities Dividends and interest – returns from investments Rental income – earnings from property Other sources – royalties, capital gains, and miscellaneous income Taxes on gross income refer to the tax liabilities calculated on this total income. These taxes are typically computed according to the relevant tax laws and rates, before accounting for deductions, exemptions, or credits.

Example: If an individual has a gross income of ₹10 lakh, taxes on gross income are initially calculated on this amount, before considering deductions like Section 80C or exemptions