ECONOMICS (CBSE/UGC NET)

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

Detailed explanation-2: -1 Additionally, interest earned on bank accounts, dividends received from stock owned by mutual fund holdings, and the profits on the sale of gold coins are all considered investment income.

Detailed explanation-3: -Capital gains are the returns earned when an investment is sold for more than its purchase price. Investment Income is profit from interest payments, dividends, capital gains, and any other profits made through an investment vehicle.

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.