Gross income includes income obtained through all sources and it is subject to income tax. Receipt of any type of economic benefit should also be included in taxable income like free tickets won in contest. Any type of property tax abatements received towards civic service is also included in income for tax purpose. There are some receipts like gifts and inheritances, that are exempted from income taxes and not included in come. Scholarship awards paid towards tuition, books, fees, equipment, supplies etc. is also exempted from income taxes and not included in taxable income.
