What does PTI mean in TAX

Pre Tax Income is the amount of money before taxes have been subtracted. The amount may include both earned and unearned income from a variety of sources such as wages, salaries, investment income, rental income, pensions and other types of payments received by individuals or businesses.

Pre-tax income usually has a major effect on taxation because it is used to determine an individual's or business's taxable net income. The amount of taxes owed can be calculated by subtracting pre-tax income from the total taxable income after taxes are considered.

Different types of deductions can be taken against pre-tax income depending on the country where the individual or business operates. Some common deductions are Social Security payments, charitable gifts, medical expenses, contribution to pension plans and mortgages/loans interest paid during the year.

Yes, taxable pre-tax incomes are those that must be reported to the tax authorities while non-taxable pre-tax incomes are excluded from any tax calculation because they do not need to be declared in annual returns or other forms related to taxation. Examples of non-taxable incomes include unemployment benefits, child support payments and some scholarships or grants given by educational institutions.

Yes, pre-tax income also plays an important role in financial analysis since it gives investors and financial advisors an indication of how much money will remain available for investments or other uses after taxation has been taken into consideration.