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Net income is defined in the tax laws to mean net income as calculated for tax purposes. Income is not defined. To apply section 97 it is necessary to know what the income of the trust is and what a beneficiaryâs share of that income is.
About Net Income. Net income is what remains of a company's revenue after subtracting all costs. It is also referred to as net profit, earnings, or the bottom line.Net Income that is not paid out in dividends is added to retained earnings.Increasing (decreasing) net income is a good (bad) sign for a company's profitability.bout Net Income. Net income is what remains of a company's revenue after subtracting all costs. It is also referred to as net profit, earnings, or the bottom line.