ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -What is Gross Income? 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: -What is meant by Gross Salary? Gross salary is the monthly or yearly salary of an individual before any deductions are made from it. Components such as basic salary, house rent allowance, provident fund, leave travel allowance, medical allowance, Professional Tax etc.

Detailed explanation-3: -According to the provisions of provident act of India, there is requirement of contribution to the provident fund on part of both the Employer and Employee. Both contributes at equal rates. The Employer deducts an amount from salary of an Employee and he himself additionally contributes and deposits the same.

Detailed explanation-4: -Gross Salary is employee provident fund (EPF) and gratuity subtracted from the Cost to Company (CTC). To put it in simpler terms, Gross Salary is the amount paid before the deduction of taxes or other deductions and is inclusive of bonuses, overtime pay, holiday pay, and other differentials.