What is Gross Income? Meaning Under the Income Tax Act.

Gross income is the starting point of the tax calculation: gross income less exempt income gives income, and income less allowable deductions gives taxable income. Residents are taxed on gross income from worldwide sources, while non-residents are taxed on amounts from a South African source. Receipts of a capital nature are left out of gross income, although the Act specifically includes some amounts and capital gains are dealt with separately under the Eighth Schedule. Gross income is wider than gross salary, which only covers your employment pay before deductions. It is also bigger than taxable income, which is what remains after exemptions and deductions.