What is Income ?
What is Income ?
Income in terms of money or asset that you earn or receive from various sources, such as your job, investments, or renting out property (House, Machinery). It is the amount of money that you have received over a period of time, such as a month or a year.
The most of people in India, the primary source of income is their job. When you work, your employer pays you a salary or wage for the services you provide for such a period. This is usually paid on a regular basis, such as every week or month, and it is typically based on the number of hours you work and the rate of pay for those hours.
In addition to your job, you may also earn income from investments. For example, if you own stocks, you may receive dividends from those stocks, which is a portion of the company’s profits that is paid to shareholders. If you have a savings account, you may earn interest on the money in the account. If you own rental property, you may receive rental income from your tenants.
Income can also come in the form of government benefits, such as Social Security or unemployment benefits. These are payments that are made to individuals who meet certain eligibility requirements.
It’s important to note that income does not refer to the amount of money that you have in your bank account or that you own in assets. Rather, it refers to the amount of money that you receive over a period of time.
Income is an important measure of financial stability and is often used to determine your ability to obtain credit, such as a loan or a credit card. It is also used to determine your tax liability, which is the amount of taxes that you owe to the government based on your income.
In conclusion, income is the money that you earn or receive from various sources over a period of time. It includes wages, salaries, dividends, interest, rental income, and government benefits. Income is an important measure of financial stability and is used to determine tax liability and creditworthiness.
Conclusion: The Primary source of Income is Job and among the Private job people are preferred Government Job. The second Primary source of Income is Business. But rather than this two main source of Income there lot of another way to income but people are feared, thus income are Investment, yes Investment is another source of income but before invested you need some money or asset. Once you have adequate money or asset
Source of Income
As per the Income Tax Act 1961 of India, there is five sources of income which are as follows.
Income from salary: Any income received as salary from an employer is taxable.
Income from house property: If you own a house property that is rented out or not used for personal use, the rental income or deemed rental income is taxable.
Income from business or profession: Any income earned from a business or profession is taxable. This includes income from freelancing, consulting, or any other self-employed activity.
Capital gains: Any income earned from the sale of a capital asset such as property, shares, or mutual funds is taxable.
Income from other sources: This includes income from interest on savings bank account, fixed deposits, and other investments, winnings from lotteries, horse races, or card games, etc.