In: Accounting
Give an example of a Grocss Income inclusion and A Gross income exclution.
Gross Income Inclusion Examples:-
(1) Compensation for services in whatever form paid, including,
but not limited to fees, salaries, wages, commissions, and similar
items;
(2) Gross income derived from the conduct of trade or business or
the exercise of a profession;
(3) Gains derived from dealings in property;
(4) Interests;
(5) Rents;
(6) Royalties;
(7) Dividends;
(8) Annuities;
(9) Prizes and winnings;
(10) Pensions;
Gross income exclution Examples:-
1) Life Insurance. - The proceeds of life insurance policies
paid to the heirs or beneficiaries upon the death of the insured,
whether in a single sum or otherwise, but if such amounts are held
by the insurer under an agreement to pay interest thereon, the
interest payments shall be included in gross income.
(2) Amount Received by Insured as Return of Premium. - The amount
received by the insured, as a return of premiums paid by him under
life insurance, endowment, or annuity contracts, either during the
term or at the maturity of the term mentioned in the contract or
upon surrender of the contract.
(3) Gifts, Bequests, and Devises. _ The value of property acquired
by gift, bequest, devise, or descent: Provided, however, That
income from such property, as well as gift, bequest, devise or
descent of income from any property, in cases of transfers of
divided interest, shall be included in gross income.
(4) Compensation for Injuries or Sickness. - amounts received,
through Accident or Health Insurance or under Workmen's
Compensation Acts, as compensation for personal injuries or
sickness, plus the amounts of any damages received, whether by suit
or agreement, on account of such injuries or sickness.
(5) Income Exempt under Treaty.
(6) Retirement Benefits, Pensions, Gratuities, etc.-