| Difference | Capital Income | Revenue Income |
| 1. Meaning | The income which is not received regularly is known as ‘Capital income’. | The income which is received regularly is known as ‘Revenue income’. |
| 2. Illustrations | Admission fees. Donation, Subscription for life membership, Donation for specific purpose, Legacy, Donation received for prize distribution, Income for loan taken, etc. are included in Capital income. | The daily income of the institution like Annual Subscription of members, Interest on investments. Rent of hall, Locker rent, Sale of old newspapers, income from entertainment programme, Government subsidy or grant, Small amount of donations or charity, Bank interest, etc. are included in Revenue income. |
| 3.Presentation in Accounts | Capital income is shown on the Liability side of Balance Sheet. | Revenue income is shown on the credit side of the Income-Expenditure Account. |
| 4. Balance | The balance of capital income is carried forward to the next year. | The revenue income accounts are closed at the end of year, so there is no question of carrying it forward. |
5. Received
information | Capital income shows the financial position of the institute. | Revenue income shows the profit of loss of the institute. |
| 6. Objective | The objective of capital income is to procure long term fund. | The objective of revenue income is to procure regular income. |
