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Diff. between financial statement income & taxable income

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Describe the differences between financial statement income and taxable income. Can a taxpayer have both? Why or why not? Give an example of each type of income for an individual taxpayer.

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Solution Summary

The difference between financial statement income and taxable income are described. Whether taxpayers can be both is determined.

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The following are some of the differences between financial statement income and taxable income

 Financial statement income is the income as reflected in the Income statement i.e. the Net Income and taxable income is the income which is calculated as per the Income tax laws.

 Financial statement ...

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  • Chartered Accountant (Equivalent to CPA in US), Institute of Charted Accountants of India
  • Bachelor of Commerce, West Bengal University
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