What is “Gross Earnings” and how is it computed?


Gross earnings, for individuals, refer to the total income earned prior to the application of any tax deductions or adjustments.


“Gross Earnings” for any month roughly is that Earning arrived by considering the prorated Annual earnings and Perks minus section 17 components; plus any variable payments in that month.

And it should be noted this is NOT the monthly salary as per the payslips for that month.


How it is computed in the application for quarter wise filling


Illustration 1:


 Components  April  Remarks 
 Standard Annual Earnings  8,50,800  A 
 Variable Pay for this month 9,870 B 
 Perquisites            -  C 
 Standard Earnings + Perquisites  8,50,800  D (A+C) 
 Section 17 components 7,500 E 
 Standard Earnings + Perquisites - Sec 17  8,43,300  F (D-E) 
 Previous month VP            -  Not Applicable 
 Gross + Previous Month VP  8,43,300  F 
 Earnings filed till last month            -  Not Applicable 
 Total - Already filed amount  8,43,300  F 
 Prorate the above 70,275 G (F/12) 
 Gross Earnings 80,145 H (G+B) 




 Components  April  Remarks 
 Standard Annual Earnings  8,50,800  A 
 Variable Pay for this month 9,870 B 
 Perquisites            -  C 
 Standard Earnings + Perquisites  8,50,800  D (A+C) 
 Section 17 components 7,500 E 
 Standard Earnings + Perquisites - Sec 17  8,43,300  F (D-E) 
 Previous month VP            -  Not Applicable 
 Gross + Previous Month VP  8,43,300  F 
 Earnings filed till last month            -  Not Applicable 
 Total - Already filed amount  8,43,300  F 
 Prorate the above 70,275 G (F/12) 
 Gross Earnings 80,145 H (G+B) 





Components  June Remarks
 Standard Annual Earnings  8,50,800  R 
 VP for this month 11,850 S 
 Perquisites            -  C 
 Standard Earnings + Perquisites  8,50,800  T (R+C) 
 Section 17 components 7,500 U 
 Standard Earnings + Perquisites - Sec 17  8,43,300  V (T-U) 
 Previous month VP 9,870 W (B+J) 
 Gross + Previous Month VP  8,53,170  X (V+W) 
 Earnings filed till last month  1,50,420  Y (H+Q) 
 Total - Already filed amount  7,02,750  Z (X-Y) 
 Prorate the above 70,275 AA (Z/10) 
 Gross Earnings 82,125 AB (AA+S)