Capital Income Vs Revenue Income

Income can sometimes be used to mean revenue or net income.

Capital income vs revenue income. They can be found in the same financial statement i e the income statement. Distinguish has to be made between revenue losses and capital losses of the business because under the provisions of this act capital losses can be set off against the income from capital gain only whereas the revenue losses are business losses and as such can be set off against any other income of the assessee. Capital income is that income which is recevied or generated from sale of capital assets like shares or gold etc. We start the income statement by gross sales and then deduct the sales return or sales discount.

The income arises from non recurring transactions by certain or a certain event is called capital income. Price received on investments in small saving schemes. Revenue is the total amount of income generated by the sale of goods or services while income is earnings or profit revenue minus expenses. The capital versus revenue distinction is also important in the set off of tax losses because losses of a revenue nature can in most instances barring certain ring fencing provisions be set off against income which is either capital or revenue in nature while capital losses may only be set off against capital gains.

Revenue income is that income which is generated from basic business operating. And we get net sales. The following are the main differences between capital income and revenue income with examples. Revenue is the sales amount a company earns from providing services or selling products the top line.