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ITR filling applicability

Aakash Ramani (28 Points)

23 March 2023

Is limit mentioned in Act of RS.2,50,000 is calculated as per Gross Total Income or Net Total Income after deductions?

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177840 Points)
Replied 23 March 2023

Gross total income from all the heads of income.

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Eswar Reddy S (CFO- at NHTF) (58270 Points)
Replied 23 March 2023

2.5Lacs limit is after section 10, 24 exemptions but before chapter VI deductions 80C to 80U

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Aakash Ramani (28 Points)
Replied 23 March 2023

Okay thanks 👍🏻

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177840 Points)
Replied 23 March 2023

You are welcome.

CA Rakesh Ishi (Working at Private Company) (8202 Points)
Replied 23 March 2023

The Gross Total Income includes all sources of income, such as salary, business income, capital gains, house property income, and other sources of income.

Once the Gross Total Income is calculated, deductions and exemptions allowed under the Income Tax Act can be claimed to arrive at the Net Total Income.

Therefore, the limit of Rs. 2,50,000 is applicable on the Gross Total Income earned by an individual during a financial year.

If the Gross Total Income of an individual is less than Rs. 2,50,000, he/she is not liable to pay any income tax. However, if the Gross Total Income exceeds Rs. 2,50,000, the individual will be liable to pay income tax on the amount exceeding Rs. 2,50,000.