ECONOMICS
MONEY MANAGEMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
interest income.
|
|
|
tax-exempt income.
|
|
|
earned income.
|
|
|
tax-deferred income.
|
Detailed explanation-1: -Examples of earned income are: wages; salaries; tips; and other taxable employee compensation. Earned income also includes net earnings from self-employment.
Detailed explanation-2: -Salary Income under Income Tax Salary income refers to the compensation received by an employee from a current or former employer for the execution of services in connection with employment. Thus, income is taxable as salary under Section 15 only if an employer-employee relationship exists between the payer and payee.
Detailed explanation-3: -When the employer declares a bonus, the bonus is added to your salary. Thereafter, the employer does your tax calculation after including bonus in your salary. Based on the employer’s calculation of your tax liability, the TDS is deducted from your salary.
Detailed explanation-4: -Active income. If you have a job and receive a paycheck, you make your money through active or earned income . Portfolio income. Portfolio income comes from investments such as dividends, interest, royalties and capital gains. Passive income. 03-Feb-2023