Assessable profit

Assessable profit,

Definition of Assessable profit:

  1. Taxable income arrived at after making deductions such as for capital allowance, expenses, and interest from the total income, as permitted by the tax laws.

  2. Assessable profit is a calculation used in tax law to determine an individual's taxable income based upon gains or losses on funds held in taxable investment accounts. The term "assessable" references profits that are capable of being assessed for taxation purposes.

  3. It is taken net of items such as investment account expenses, depreciation, and charitable donations. Essentially, it is taxable income after accounting for allowable deductions. For an individual, assessable profit is usually considered the income that is derived from passive means, rather than income that is derived from a salary, wages, or tips. Passive income is income that is received but that requires little effort on the part of the recipient to maintain it.

Meaning of Assessable profit & Assessable profit Definition