No, income, taxable income, and net income are not the same. Here's an explanation to differentiate them:
1. **Income**: Income refers to the total amount of money earned or received by an individual or a company from various sources such as salaries, wages, investments, and business activities.
2. **Taxable Income**: Taxable income is the portion of income that is used to calculate how much tax an individual or a company owes to the government. It is determined after accounting for deductions, exemptions, and credits allowed by tax laws. Not all income is taxable; for example, some types of income like gifts, inheritances, or certain welfare benefits may not be subject to income tax.
3. **Net Income**: Net income, also known as profit or net earnings, is the amount left after subtracting all expenses (including taxes) from the total revenue of a business or an individual. It represents the actual amount of money that remains after all deductions have been made.
So, in summary:
- Income is the total amount earned.
- Taxable income is the portion of income subject to taxation after deductions.
- Net income is the final amount after deducting all expenses from the total income.
Therefore, income, taxable income, and net income are distinct concepts with different meanings and calculations.
