| Definition |
Money received on a regular basis from work, investments, or other sources. |
Total value of assets owned minus liabilities at a given point in time. |
| Nature |
Flow concept; measured over a period of time (e.g., monthly or yearly). |
Stock concept; measured at a specific point in time. |
| Sources |
Salaries, wages, rent, dividends, business profits, pensions, etc. |
Savings, property, investments, land, and other owned assets. |
| Frequency |
Earned continuously or periodically. |
Accumulated and held; may or may not generate income. |
| Measurement |
Measured as money earned per unit of time (e.g., ₹50,000/month). |
Measured as net worth (e.g., ₹1 crore in assets). |
| Role in Economy |
Supports daily consumption and living expenses. |
Provides long-term financial security and investment capacity. |
| Impact of Inflation |
Can lose real value if not adjusted or increased accordingly. |
Asset values may appreciate or depreciate with inflation. |
| Tax Treatment |
Generally taxable (income tax). |
May be taxed as wealth tax, inheritance tax, or capital gains. |
| Economic Inequality |
Contributes to income inequality metrics like Gini index. |
Often a major factor in long-term economic inequality. |
| Examples |
Monthly salary, rental income, interest from deposits. |
Real estate, mutual funds, gold, bank savings, shares. |
Income vs Wealth