Definition - What does Income mean?

The term income refers to goods, money, or other forms of economic benefits. As per income tax laws, income can be either direct (through employment) or passive. Examples of passive income include rentals, investments, dividends, or interest.

Justipedia explains Income

For income tax purpose, inheritances and gifts received are excluded from income calculation. Tax on income is usually calculated by the state based on how much a person is getting through their income. Gains such as property valuation or increase in value of investment are not included in income.

Share this:

Connect with us

Find a Lawyer