Chargeable income, also known as taxable income, is the portion of an individuals or businesss gross income that is used to calculate how much tax they owe in a given tax year. It is the income over which the government imposes tax and is generally calculated by subtracting allowable deductions and exemptions from adjusted gross income (AGI) . Chargeable income includes wages, salaries, bonuses, tips, investment income, and various types of unearned income. It also includes earnings generated from appreciated assets that have been sold during the year and from dividends and interest income.

In Malaysia, chargeable income is calculated by subtracting all tax exemptions and tax reliefs from total annual income. For example, perquisites such as bill claims, company credit cards, loans from the company, sponsored club memberships, sponsored child tuition fees, personal drivers, and any benefits offered by the employer that could be converted into cash are included in taxable income.

It is important to note that the amounts included as income, expenses, and other deductions vary by country or system. Many systems provide that some types of income are not taxable (sometimes called non-assessable income) and some expenditures not deductible in computing taxable income. Some systems base tax on taxable income of the current period, and some on prior periods.

In summary, chargeable income is the income over which the government imposes tax, and it includes various types of earned and unearned income. It is calculated by subtracting allowable deductions and exemptions from adjusted gross income (AGI) .