Understanding Total Income: What You Need to Know When Filing Your ITR

When it comes to filing your Income Tax Return (ITR), there are several aspects that you need to consider, including your total income. But what exactly is meant by 'total income'? In this article, we will explore the meaning of total income and how it affects your ITR filing process.

According to guidelines from the Income Tax Department, Total Income means Salary Income plus Interest Income less all deductions under Chapter VIA of the Income tax Act. While this aspect may not have been explicitly clarified by the Income Tax Department, it is possible to derive the meaning of Total Income from their guidelines.

For instance, the Income Tax Department exempted salaried employees with income up to a certain limit (Rs.) from filing an ITR for the assessment year 2013-14. However, this exemption did not apply to Central Government Employees with total taxable income exceeding Rs.5 lakhs, who were required to file their ITR online.

In fact, all salaried employees with total taxable income exceeding Rs.5 lakhs are also required to file their ITR online. This includes individuals with income of more than Rs., who must furnish a return electronically.

The Income Tax Department has clarified that the exemption from filing an ITR will not be extended to salaried employees for assessment year 2013-14. In addition, they have issued a notification dated (Click here to read the notification) stipulating that individuals with total income in excess of Rs. must furnish a return electronically.

In conclusion, Total Income is a critical aspect of ITR filing and refers to Salary Income plus Interest Income less all deductions under Chapter VIA of the Income tax Act. If you are a salaried employee with total taxable income exceeding Rs.5 lakhs, it is essential that you file your ITR online to comply with the Income Tax Department's guidelines.

Download ITR-1 and ITR-2 with instructions

Click here to read Income Tax Department’s clarification for not extending the exemption from Income Tax Return to Salaried Employees this assessment year 2013-14.

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