Hey, I can tell you what does pre tax income means. The net income received by a business prior to taxes being deducted or accounted for is a pretax income. You can also call it earnings before taxes (EBT), or pretax earnings. It includes interest, depreciation, and operating expense deductions. I have shared more information about the pre tax I am aware of below.
What Does Individual Pre Tax Annual Income Mean?
It shows the net income of an individual or business before any income taxes are deducted. It also represents the earnings from all sources but does not account for income tax, GST, or other statutory deductions. For companies, pre-tax income is calculated as:
Pre-Tax Income = Total Revenue − Operating Expenses − Depreciation − Interest on Loans
For salaried and self-employed individuals, pre-tax income includes:
Basic salary, bonuses, and allowances
Business or professional income
Rental income from properties
Capital gains from investments
Interest from fixed deposits, savings accounts, etc.
Example: If a company has Rs.50 lakh revenue, with Rs.30 lakh in expenses, then pre-tax income is Rs.20 lakh.
I hope you understood about the pre tax income.
Get Assistance with Tax Assessment Via Experts at NoBroker Now!
Read more:
Which Income is Exempted from Income Tax?
Your Feedback Matters! How was this Answer?
Shifting, House?
✔
Lowest Price Quote✔
Safe Relocation✔
Professional Labour✔
Timely Pickup & Delivery
Intercity Shifting-Upto 25% Off
Check Prices
Intracity Shifting-Upto 25% Off
Check Prices
City Tempo-Upto 50% Off
Book Now
What Does Pre Tax Income Mean?
ruchi
123 Views
1
11 months
2025-03-26T16:35:40+00:00 2025-03-26T16:35:40+00:00Comment
Share