BANKING AFFAIRS

Detailed explanation-1: -What is Investment Income? Investment Income is the income that is generated through dividends, payment of interest, and capital gains through the sale of any asset or security and profits made by any kind of investment vehicles like bonds, mutual funds, etc.

Detailed explanation-2: -Investment Income: “Investment income” includes interest, rents, royalties, dividends, capital gains, and other income derived from an asset.

Detailed explanation-3: -Earned income is the money you make in salary, wages, commissions, or tips. Investment income is money you make by selling something for more than you paid for it. Passive income is money you make from something you own, without selling it.

Detailed explanation-4: -Key Takeaways. Earned income is any income received from a job or self-employment. Earned income may include wages, salary, tips, bonuses, and commissions. Income derived from investments and government benefit programs would not be considered earned income.