Difference Between Income And Wealth
The main dissimilarities or difference between income and wealth can be pointed out as follows:
1. Introduction
Income: Money received regularly by performing different economic activities such as business, job, investment etc.
Wealth: Total amount of money and other properties (net accumulated assets) of an individual or a firm.
2. It Denotes
Income: Financial Inflow
Wealth: Net Worth
3. Time Period
Income: Income can be generated immediately on a regular basis.
Wealth: It takes a long time to create wealth
4. Tax Charged
Income: Income tax is charged according to the amount of money earned
Wealth: Wealth tax is charged according to the market value of wealth
5. Expression
Income: It is expressed in terms of money (monetary value).
Wealth: It is expressed in terms of market value
Also Read:
Also Read:
6. Relation With Life Style
Income: It helps to maintain life style
Wealth: It helps to improve life style
7. Examples
Income: Salary and wages received, interest received, business profit etc. are some examples of income
Wealth: Personal properties, bank deposits, share, bond etc. are some examples of wealth.
Income Vs Wealth (Comparison Chart)
I hope this post is helpful to understand the difference between income and wealth and to make comparison between them.
Income Vs Wealth (Comparison Chart)
Basis For Difference
|
Income
|
Wealth
|
Introduction
|
Money received regularly by performing economic activities
|
Total amount of property of an individual
|
Denotes
|
Financial Inflow
|
Net Worth
|
Creation Time
|
Immediate
|
Long time
|
Tax Charged
|
Income Tax
|
Wealth
|
Expression
|
Money value
|
Market Value
|
Life Style
|
Maintains lifestyle
|
Improves lifestyle
|
Examples
|
Salary, wages, interest etc.
|
Bank deposits, share, bond, personal properties etc.
|
I hope this post is helpful to understand the difference between income and wealth and to make comparison between them.
