ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Earnings are the amount of money you make from doing a job. You’ll be a lot more excited about babysitting when you learn your earnings will be more than generous. Most earnings come from work that you’ve done, although money you earn from an investment can also be called earnings.

Detailed explanation-2: -Portfolio income is money received from investments, dividends, interest, and capital gains. Royalties received from investment property also are considered portfolio income sources.

Detailed explanation-3: -An investment’s return can come in two forms: Income, including interest or dividends. A dividend is a portion of a company’s profit that is paid to its shareholders. Increased value, also called “capital gain, ” which lets you sell your investment for a profit.

Detailed explanation-4: -In general, net investment income includes, but is not limited to: interest, dividends, capital gains, rental and royalty income, and non-qualified annuities. Net investment income generally does not include wages, unemployment compensation, Social Security Benefits, alimony, and most self-employment income.

Detailed explanation-5: -Most investment income is taxable. But your exact tax rate will depend on several factors, including your tax bracket, the type of investment, and (with capital assets, like stocks or property) how long you own them before selling.