You can’t answer unequivocally, what is income. This concept has many aspects that characterize it from one side or another. The definition of income is always accompanied by the attached concepts in order to understand what kind of financial flows are involved. So, income can be gross at the state level, considered as the profit of the enterprise or denote the addition of cash from a simple individual. Further, we will talk about what is the income of individuals and what are its features. 
Theoretical concepts
If we turn to smart textbooks, we can generally understand that the income of an individual is a certain amount of money that an individual is able to spend on his needs, while the amount of his own accumulated capital will not change. In fact, this means that all income for a certain period of time that can be spent is the income of individuals.
Another theoretical definition says that the amount of profit can be measured by stable (unchanged) spending, but at the same time, in the future, when prices change, the same level of consumption will be maintained. Thus, constant income is determined, but this concept is very difficult to evaluate objectively, because in life there always happen unforeseen expenses that are not included in the proposed plans.
Forms of income
Depending on various factors of influence, there are other concepts related to the amount of money received or spent. First of all, this is necessary for the tax authorities, since the main deductions to the budget are collected from the employee’s salary.
If an individual has certain tax credits, then this is all taken into account in payroll. The amount received on hand will be referred to as taxable income. When the main payment percentage is deducted from this amount, you will have disposable income.
Real income is a monetary expression of consumer opportunity. It is usually indexed according to real price indicators and allows you to determine how much and what an individual can buy for a certain period of time.
Personal budget
Considering what income is, one cannot help but recall the personal budget. Of course, each of us comes across this concept daily. But if you carefully look at the theory, it will be very useful to know about all the nuances of formation personal income and expenses.
The personal budget consists of two components: income and expenditure, or assets and liabilities. Each of them is formed at the expense of certain amounts. So, budget assets include:
- Pocket money is the amount that a person can afford to spend on current expenses.
- Reserves are deferred money that is used in cases of emergency.
- Savings are the sum of savings for the future.
- Capital - this money cannot be felt, because often they are investments or investments in large projects, real estate or other expensive property (apartment, car, land, business, securities).
A personal budget liability is actually the cash income or the sources from which it comes. There are only two options here - own funds received directly for labor and borrowed funds taken from someone on a repayable basis.
As in the bookkeeping of any enterprise, a person’s personal budget is prepared in such a way that assets should always be equal to liabilities. 
Family finance
Finding a family, any person automatically becomes an accomplice in the formation of the family budget. Now this is not personal expenses and income, but joint with the spouse.The family budget is actually a combination of the assets and liabilities of the husband and wife. I want to note that many people mean by the family budget only income, but in fact, this includes all sources of obtaining money and expense items.
The main difference between joint finances and personal finances is that they are formed only at the expense of the husband and wife’s separate incomes, but they are spent in four directions at once. Here I want to clarify that the average family consisting of two parents and one child is taken into account. Schematically, the family budget can be represented as follows:
Family income
The income level of any household depends on three components. Let's consider them in more detail.
The first source from which the family budget is formed is cash income. This includes, first of all, wages along with all bonuses and bonuses, then pensions, scholarships, social and insurance payments. It also includes income from business and various financial transactions with property or savings (for example, rental housing or dividends on deposits). In an average family, the wages of both spouses usually amount to only 45-50% of all income.
The second source is in-kind income, or resources extracted and grown by your own hands. Most often these are various agricultural products, the crop of which can be harvested on their own land plots. This category also includes gifts and winnings.
And the third component of family income is benefits. This includes only that part of the population that is strictly defined by legislative acts. Examples include travel tickets issued by the state, retirees and students. Families with many children pay less for utility bills and kindergarten. 
Family Income Example
When planning a family budget, revenues are taken into account first. Of course, many of us do not keep cost diaries and do not build tables of assets and liabilities. But you need to know that there are special diary programs that help to correctly plan the budget so that everything is enough and there is still money left in order to postpone them. After all, any bookkeeping begins with proper planning. And the clearer and clearer the numbers are visible, the easier it is to manage finances. We suggest considering how the table with the revenue side should look like.
| Family member | Income group | Content | Amount, rub. |
| Dad | Wage | For work at the enterprise | 50 000 |
| Side job | Earnings in a taxi | 11200 | |
| Mama | Wage | For work in the hospital | 25 000 |
| Social benefits | Child allowance | 4000 | |
| Unemployment benefits | 4000 | ||
| In the form of services | Reduced transportation fare in the city | 1500 | |
| Son, a college student | Social benefits | Scholarship | 6000 |
| Schoolgirl daughter | Business income | Sale of pies at school | 500 |
| Family income | From savings | Dividends for contribution | 700 |
| From property | Cottage Rental | 8000 | |
| Total | 110900 |
We deal with taxes
So, what income is and how it is formed, we have determined. Now is the time to move on to the very important topic of taxation. Everyone is required to pay the mandatory income tax. residents and non-residents RF receiving wages within our state. But you need to know that not all incomes are taxed. We will understand this.
What you should pay for
If you have property that you have owned for less than three years, and you decide to sell it, then you will have to pay 13% of its market value to the government agency. This applies mainly to real estate, road transport, jewelry for a certain amount. A complete list is provided in law. Exactly the same situation with taxes for rental property.
Incomes received outside the Russian Federation, lottery winnings are subject to taxation.
What you do not need to pay for
It is not worth paying the tax for the property sold if you have owned it for more than three years. Nothing is deducted to the budgets for the inheritance and under the gift agreement. Full information on the subjects and conditions of donation can be found in the Family Code of the Russian Federation.
What to do if you are an IP
For individual entrepreneurs, everything is much more complicated. Now we will not delve into all the subtleties and nuances of the income from their activities, but it is worthwhile to dwell on such a concept as a potential income.
In order to simplify the IP life and trips to the tax office, an indicator such as annual potential income is often used. Having paid once taxes on the amount received, the entrepreneur is exempt from monthly deductions. You can calculate the number of potential income by yourself, referring to the regulatory documents approved for the current year. For each business entity in a certain field, their own coefficients are set, which are necessarily taken into account in the calculations.
In this case, the boundaries are set. The minimum potential annual income cannot be lower than 100 thousand rubles and above 1 million rubles.
