Source income

Source income

Source income refers to the money earned by an individual or a business through their primary or secondary means of generating revenue. It is the main or original source of an individual or business's income, which could come from various sources such as wages or salaries, self-employment income, interest and dividends, rental income, capital gains, and profits from a business or investment.

For an individual, source income is usually associated with their main occupation or job, such as the salary they receive from their employer. For a business, source income can come from the sale of goods or services, or from investments made with surplus funds.

It is important to understand the source income of an individual or business as it determines the type of tax that needs to be paid and the applicable tax laws. In many cases, the income generated from different sources may be taxed differently, and it is essential to correctly identify the source income to ensure accurate tax reporting and compliance with the relevant laws and regulations.