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 | May | Remarks |
| Standard Annual Earnings | 8,50,800 | I |
| Variable Pay for this month | - | J |
| Perquisites | - | C |
| Standard Earnings + Perquisites | 8,50,800 | K (I+C) |
| Section 17 components | 7,500 | L |
| Standard Earnings + Perquisites - Sec 17 | 8,43,300 | M (K-L) |
| Previous month VP | 9,870 | B |
| Gross + Previous Month VP | 8,53,170 | N (M+B) |
| Earnings filed till last month | 80,145 | H |
| Total - Already filed amount | 7,73,025 | O (N-H) |
| Prorate the above | 70,275 | P (O/11) |
| Gross Earnings | 70,275 | Q (P+J) |
| 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) |