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TeachMeFinance.com - explain Income basis historic definition... Income basis -- The percentage of return from an investment, as, for example, the percentage that the interest on a bond or the dividend on a stock equals when calculated on the cost of the bond or stock. A bond or stock paying 6 per cent which is bought at 120 returns or yields 5 per cent ; therefore, this bond or stock at 120 is on a 5 per cent income basis. About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2007 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.