Additional Questions: What is Income? | Introduction to Financial Markets for Class 9 PDF Download

Q.1. What is budget? 

A budget is a plan for managing money during  a given period of time. It can be monthly , half yearly or yearly.

Q.2. What is Income? Name the sources of Income. 

Income may be defined as the true increase in the amount of wealth which comes to a person during a fixed period of time.
Sources of Income:
(a) Income from salary
(b) Income from house property
(c) Profit and Gains of Business or Profession
(d) Income from capital Gain
(e) Income from other Sources.

Q.3. What is Gross Income? 

Gross Income is the total income received by a person from the above sources.

Q.4. What is net Income? 

Net Income is the income after deduction  allowed  under the  provision of Income Tax from the gross income.

Q.5. What is disposable income? 

It is the amount a person receive actually , i.e. the net income which is available to him for spending or  saving.

Q.6. What do you mean by direct tax and indirect tax? 

• Direct Tax is the tax imposed by the government on one person and paid by the same person.
  Example: Income tax for the salary earned by a person.
• Indirect Tax is the tax imposed by the government on one person and actually paid by another person.
  Example: Goods and Service Tax.

Q.7. How the Taxes collected by the Government are utilized?

Taxes are utilized by the Government for public spending like welfare  scheme, education system, infrastructure development, employment provision etc.