(a)OR(b)

Discuss briefly, the concept of ‘Mixed Income of Self-Employed’ under the Income method.

Mixed Income refers to the combined income earned by self-employed people rendering their productive services. This income cannot be separated into sub-component factor incomes – rent, wages, interest and profits. For example, income earned by a chartered accountant running his firm from his own residence.

This given statement is refuted as depreciation is the continuous fall in the value of an asset due to normal wear and tear or expected obsolescence. Value of fixed assets may fall owing to normal wear and tear or change in technology over a period of time.