Adjusted Gross Income (AGI) is a US tax concept representing an individual's total gross income from all sources — including wages, business income, capital gains, dividends, and rental income — minus specific above-the-line deductions such as student loan interest, alimony payments, retirement account contributions, and self-employment taxes. AGI serves as the baseline figure used to calculate federal income tax liability and to determine eligibility for various tax credits and deductions in the United States. While AGI is a specifically American tax term with no direct equivalent in Indian tax law, Indian investors and tax professionals encounter it when dealing with Non-Resident Indians (NRIs) filing US tax returns, when assessing the tax implications of investments by US-based Indian diaspora, or when evaluating American companies in the context of their executive compensation and financial disclosures. In the Indian tax framework, the closest conceptual equivalent is 'Gross Total Income' — the sum of income from all five heads (salary, house property, business/profession, capital gains, and other sources) before deductions under Chapter VI-A of the Income Tax Act, 1961 — which serves as the base for calculating the individual's final tax liability after applying eligible deductions.
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