There are some specific incomes which are completely exempt from the tax and such incomes are not added up in the gross total income like income from agriculture.
Calculation of Income under each head: Income should be calculated as per the rules of the specific head of income, under which the source is covered. Income from Other Sources: All the incomes which are not covered under the above heads are taken to this category, such as interest income, royalty, winning from lottery/crossword puzzle, etc. 
Capital Gains: Profits on the transfer of movable and immovable property. Profit and Gains from Business or Profession: It includes profits generated from the running the business or receipts from the profession. Income from House Property: It covers rental income. Salary: As the name suggests, it takes into account all the receipts and perquisites from the employer, including pension. Income Classification: As per the Income Tax Act, the income is categorized under five heads of income, which covers almost all types of sources through which one can receive income. 
Identification of Residential Status: A person’s residential status plays a key role in ascertaining the income which should be included in the taxable income of the person.The steps to calculate gross total income are given as under: salary, house property, business or profession, capital gains and other sources, once you provide for clubbing of income and set off and carry forward of losses. Gross Total Income or GTI refers to the sum of the income calculated under each head of income, i.e.
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