Mixed-income of self-employed’ is the combination of two different types of income streams.
Income from a profession or business is mixed-income if the profits and gains are not separately identifiable.
In the case of mixed-income, the tax treatment depends upon the period for which the mixed-income is earned.
If it is earned during the previous year then it is taxable as business income or professional income in that year.
If it is earned after the end of the previous year but before the due date of the furnishing return then it will be taxable in the subsequent assessment year.
If it is earned after the due date of furnishing return then it will not be taxable at all.
For example :
A business person who is also a professional doctor will get income from his business and also from his profession. This type of income is known as mixed-income for the self-employed.
Final answer :
Mixed-income is a term used to denote the total amount of income generated by a business, including the salary of the owner and any other earned income.
The purpose of calculating mixed-income is to aid in determining the appropriate tax rate for the business.
For example :
If a person owns a car and rents it out to others for use, he earns money by renting out the car. This money is his mixed-income because he did not earn it by working in any organization but earned it by using his car.