Gross income refers to the total amount of income earned before any deductions or taxes are taken out. It includes income from all sources, not just employment, and is not limited to income received in cash; it also includes property or services received. For individuals, gross income includes all wages, salaries, profits, interest payments, rents, and other forms of earnings. For businesses, gross income is the difference between revenue and the cost of making a product or providing a service, before deducting overheads, payroll, taxation, and interest payments.
It is important to note that gross income is different from net income, which is the amount of income left after taxes and other deductions have been taken out. For individuals, net income is also known as take-home pay. For businesses, net income is also known as profit.
In summary, gross income is the total amount of income earned before any deductions or taxes are taken out, while net income is the amount of income left after taxes and other deductions have been taken out.
