Definition and Characteristics of Income and Capital and Revenue

Posted by Unknown On Tuesday, June 11, 2013 0 comments


1. What is income?
Ans:  
Income: Income is the monetary return coming in with expected regularity from definite sources.


2. What are the features of income?
Ans:
Features of income:
A. Revenue receipt.
B. Recurrent in nature.
C. Money or money’s work.
D. External source.
E. Definite source.
F. Windfall or unexpected or onetime occasional income.
G. Irrelevant of pending dispute.
H. Actual receipt.
I. Nature of source.
J. No bar to illegality.
K. Compulsory or optional receivable.
L. Receivable.
M. Imiginary or planned income.


3. What are the Sources of income?
Ans:
Sources of income:
1. Salary income (20).
2. Interest on security (22-23).
3. Income from house property (24-25).
4. Agricultural income (26-27).
5. Income from business or profession (28-36).
6. Capital gain (31-32).
7. Income from other sources (33-34).

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