Definition of Taxable Income
That particular amount of income which is subjected to tax is termed as taxable income. It is mostly defined in terms of a portion of an individual’s gross income, and gross income is the one from which allowances etc. have been deducted.
Explanation of Taxable Income
There are two types of taxable income;
1. Earned income i.e. salary, wages, bonuses, commissions, etc.
2. Unearned income i.e. dividends, interest, rents, etc.