Income & Revenue
This query is : Resolved
28 September 2007
turnover, revenue = gross
income, profits = net
income, profits = net
28 September 2007
Take an example:
hope you own a company that produces needles and pins.
The revenue you generate yearly is 120 (this is what your customers pay you for your output, the needles and pins; it is also called turnover). You need to pay 90 for inputs (labor, metal supplies, depretiation of the machinery, premises maintenance, ...). Those 90 are your costs.
That is, your gross income (gross earnings, pre-tax profit) is 30. After paying the income tax, which is 8, you end up with net income (net earnings, after-tax profit) of 22. You can either plough the money back in the business (re-invest) or disburse dividends to yourself and other shareholders - or any combination of both.
Hope this helps (although it is terribly simplified). Please note that the terminology sometimes fluctuates.
hope you own a company that produces needles and pins.
The revenue you generate yearly is 120 (this is what your customers pay you for your output, the needles and pins; it is also called turnover). You need to pay 90 for inputs (labor, metal supplies, depretiation of the machinery, premises maintenance, ...). Those 90 are your costs.
That is, your gross income (gross earnings, pre-tax profit) is 30. After paying the income tax, which is 8, you end up with net income (net earnings, after-tax profit) of 22. You can either plough the money back in the business (re-invest) or disburse dividends to yourself and other shareholders - or any combination of both.
Hope this helps (although it is terribly simplified). Please note that the terminology sometimes fluctuates.
28 September 2007
As discussed on vikipedia:
Revenue is a business term for the amount of money that a company receives
from its activities in a given period, mostly from sales of products
and/or services to customers. It is not to be confused with the terms
"profits" or "net income" which generally mean total revenue less total
expenses in a given period.
Revenue is a business term for the amount of money that a company receives
from its activities in a given period, mostly from sales of products
and/or services to customers. It is not to be confused with the terms
"profits" or "net income" which generally mean total revenue less total
expenses in a given period.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Section 194JA & JB Income which ITR Form to use
- Pass word to open justification report for Q1 for FY 2026-27
- PPF interest-As Exempt Income disclosure
- Under construction property in ITR
- Scrutiny and reopening of past returns
- Booth for sales promotion
- Upload Level ValidationITR3Category of Defect B/D
- Building tax payment deduction in rental Income
- F & O PROFIT REPORTING FOR AY 2026-27
- Difference in GSTR3B system generated which is correct and actual Payment it asks
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
