Abstract: Abstract:Gini coefficient is not free from biasness as a measuring index of inequality. When income levels are classified into various groups, there is every possibility of problem of overlapping. In such case, use of Gini coefficient may result in inappropriateness of the objective of the inequality study. If not meticulously implemented, it may yield results far from reality also. The residual term may create biased result. Hence, utmost caution should be taken while using it, particularly while undertaking a decomposition study to determine the exact coefficients in between groups and within groups.