What Does Net Income Per Annum Mean?


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Akshay Kalbag answered
The word net income per annum is defined as the annual gross income (or the gross income earned by a person every year) from which the expenses, including taxes and insurance, have been deducted. However, depreciation, the additions to reserves and the distribution of earnings on an annual or yearly basis are considered to be a part of the net income per annum of a company. Net income per annum is basically the net income earned every year.

The word per annum is abbreviated as p.a. It is a Latin phrase. It literally means through a year, and therefore, is used in the context of something that occurs on a yearly basis, or something that happens every year. It also means in or for each year or annually or by the year or every year. The context of per annum, meaning every year, is usually with reference to a sum of money paid or received.

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