The three types of income are as follows:
1. Active income or earned income is earned by doing contractual or commission-based work or full-time jobs like working as an hourly employee, working as a contractor, working as a salaried employee, etc.
2. Portfolio income or capital Gain income is the income generated when you sell stock more than you paid for it.
3. Passive Income is the income generated from other sources like starting a YouTube channel, selling clothes online, renting a place, investing in stocks, etc.