ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -Investment Income: “Investment income” includes interest, rents, royalties, dividends, capital gains, and other income derived from an asset.

Detailed explanation-3: -3 Types Of Investment Income They are: Interest. Dividends. Capital gains.

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.

Detailed explanation-5: -Investment income such as interest and rent is considered ordinary income and will generally be taxed according to your ordinary income tax rate.