ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Gross income refers to the total income earned by an individual on a paycheck before taxes and other deductions. It comprises all incomes received by an individual from all sources – including wages, rental income, interest income, and dividends.

Detailed explanation-2: -Step 1: Find out all the sources of income like salary, dividends, rent, etc. Step 2: Aggregate all these sources of income obtained in the first step: Gross Income = Salary + Rent + Dividends + Interest + All Other Sources of Income.

Detailed explanation-3: -Net income before tax is the difference between your total revenue and your total expenses before accounting for taxes. It is typically presented as a single line item on your income statement.

Detailed explanation-4: -Gross pay is what employees earn before taxes, benefits and other payroll deductions are withheld from their wages. The amount remaining after all withholdings are accounted for is net pay or take-home pay.

Detailed explanation-5: -By subtracting all the eligible deductions from the gross taxable income, you will arrive at your total income on which you need to pay tax basis your tax slab. This slab rate is different for senior citizens. For those who are over 60 years old with up to Rs 3 lakh net income, the tax rate is nil.