what is income in taxation
Income in taxation refers to the total amount of money or its equivalent that an individual, business, or other entity receives during a specific period. In the context of taxation, it encompasses various sources, such as wages, salaries, profits, interest, dividends, and other forms of earnings. Essentially, it represents the financial gain or benefit derived from different sources, and it serves as the basis for calculating the tax liability of an entity. Tax authorities use the concept of income to assess the amount of taxes owed by individuals and businesses, considering applicable deductions, exemptions, and credits in the tax code.