Concept of income and real income in Turkish Tax Law

n ABSTRACT The income tax having an important part in financing the public expenditures taxes the income. The term 'income' included in the working area of the science branches, such as economics and accounting forms an important study area from income tax point of view. The fact that the definition of income can directly affect tax revenue and indirectly affect tax burden shows the importance of the term 'income'. One of the important features of the term 'income' from taxating point of view is the principle of the reality of income. As a rule the income taxes to tax the income on its real amount. But because of the effects both of some legal regulations and the inflation faced in economy this rule is abolished, and the income is not taxed on its real amount. In general this study in which the term 'income' in income tax is studied consists of two parts. In the first chapter the term 'income' is considered in all its aspects from various science branches and Turkish income tax point of view. In the second chapter, in Turkish income tax, the principle of the reality of income, and being determined the real income, and the cases in which the income can not be determined on its real amount are being studied. In the last chapter making the general evaluation of the study, the suggestions are given.