Income Write For Us
For employed people, the salary or wage earned is the main income source. In businesses, income from core business functions is income after paying applicable expenses or taxes. Income is nothing but the income earned during a period. In principle, all income is taxable in India.
According to income tax, there are two types of income:
Taxable Income
The income earned by an individual or company during a year is divided into five income categories and taxed accordingly. The five items of income are as follows:
– Salary/pension income: Includes base salary, allowances, tips, and earnings instead of the salary earned by an individual. It also includes the pension income that a pensioner receives.
– Business/Professional Income: All income a business earns or receives from selling goods or services is known as business or professional income. This income is subject to tax after considering expenses and allowable deductions.
– Income from home ownership: All income from renting a house is included in income from home ownership.
– Income from capital gains: This includes profits or profits from the sale of capital assets such as land or buildings. – Income from other sources: All income not included in the above income is listed here.
Tax-free or non-taxable income:
Certain types of income are exempt from tax. For example, agricultural income is exempt from tax under Article 10 of the Income Tax Law.”
How is your income taxed?
If you make some money, you may owe taxes to the IRS. If it’s earned income, the money you worked for, you’ll probably pay at least federal income taxes, Social Security taxes, and Medicare taxes. Depending on where you live, there may also be some taxes from your city or state.
Defining basic income is an important part of understanding your finances. Simply put, income is the money you earn through work, selling something for a profit, or holding a valuable asset.
It is also important to know the types of income, e.g., B. passive income versus active income, how your income is taxed, and how to reduce your taxable income to pay less taxes.
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