What is Net Income?

[mush]

Hi,
Im selfemployed here and im quite comfused about net income.
1) net income=gross income - expences
2) net income= (gross income - expences) - TAX

I have discussed this thing with my accountant(CA) and he was sure that no-1 above is right.
guys what do u think ? which one is correct ?
i need an answer in simple english.
thanks

[confusedhsmp]

It can be either one of them depnding what you want them for.

Net Income Before Tax (or Net Profit before tax or NPBT)
Net Income After Tax or (Net Profit After Tax)

HO looks at Net Income Before Tax! but consult other members or probably read guidance.