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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.
Taxable Income. What is 'Taxable Income'. Taxable income is the amount of income used to calculate an individual's or a company's income tax due. Taxable income is generally described as gross income or adjusted gross income minus any deductions or exemptions allowed in that tax year.