The simplest way to calculate business income is to deduct all the expenses from the profit earned. For instance, if a business earns a profit of Rs. 60,000 and the total expenses incurred are Rs. 12,000. Then business income = Rs. 60,000-12,000 = Rs. 48,000.
The formula to calculate business income is: Business income= income earned - expenses incurred. For example, Profit earned = Rs.10,000 Total expenses= Rs. 3,000 Then, Business income = Rs. 10,000-3,000 = Rs. 7,000
Let us assume a situation where the business earned a profit of Rs. 7,000 and, while earning this profit, its total expenses occurred were Rs. 1,000. In this case, the business income will be calculated by deducting total expenses from the profit earned. Hence, business income will be equal to Rs. 6,000 (Rs. 7,000 - 1,000)
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