The Concept Of Income In Individual Income Tax Law

Income,as the core of individual income tax,has been in a vague state of concept,which seriously affects tax fairness and the stability of tax law.Under the background of the tax reform which is characterized by integration and classification,this issue gains its practical significance.The concept of income is complicated,because it's political and practical factors."Take ancient times as the mirror,we may know the prosperity and decline" The concept of income is different in different countries,at different times.The reasons behind it,is the wealth for us when we define the concept in our country.Since the income tax source is abroad,the concept of income has been discussed in the field of tax law in various countries,so as to minimize the confusion of the concept of income in practice.The Source Theory requires consistency of the source and periodicity of formation of income,which is the framework of the dichotomy of capital and income.The establishment of this theory,which is based on the No Harm to the Source of Taxation,displays the feature of agricultural society.The confinement of the scope of income within the fruits of the original thing is too narrow,which cannot give a convincing conclusion in practice.Market Income Theory is based on market trading,which is conducive to the convenience of administration,and the fact income is limited to the profit-oriented trading,results in narrow income scope.The theory of Net Asset Increase includes all asset growth."acquisition" and "asset" reveal the core of the income,but its coverage is too large to be fully practiced.Individual income tax law highlights the principles of tax fairness and taxing on capacity.By comparative analysis,it is more consistent with the "income" in individual income tax to limit the theory of Net Asset Increase,which means a net increase in the amount of assets available to be measured in the available currency within a specified period of time.Each country's tax system is different,each has its own characteristics,and the concept of income needs to be enriched with the legislative reality and problems of the individual tax.On the basis of the characteristics of individual income tax law,we can adjust the definition of income,according to equitability of taxes,but the adjustment can't afford to lose the true spirit of income.Since 1949,the scope of individual income tax in China has been expanding,which can be covered by the theory of Net Asset Increase.There exist some provisions of law to deal with the definition of income,which forms a legal framework including general provisions,affirmative provisions and negative provisions.According to this,the definition needs to be emphasized:to exclude the tax of fiscal subsidies,to determine the tax on the gift income,to specify the time points and the time unit of calculation.The analysis of taxability of some special income:the application of the concept of income.The capital gains are also in the realm of taxation.However,we should pay attention to the long-term inflation problem and the adverse effect of the progressive tax system.Thereinto,the taxability of compensation for damages should be judged by the principle of right substitution or continuation,to obtain the different answers by distinguishing the personal right and property right.Only the compensation for property right possesses the taxability.It is difficult to tax on the WeChat reward under the background of Categorized Income Tax,because of the difficulty to judge taxable items.On the basis of the clear concept of income,it will be used as a standard for legal interpretation of the income.Make it clear to the public.The concept determines the criteria of judgement and delineates the scope of the expansion of other income.Comb the wide range of the existing legal norms and supplementary explanations related,so that the income tax is more specific and clear.At the same time,the public judges whether the new income is taxable according to the concept of income,so they can better arrange their economic life.