ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Net salary, also known as take-home salary, is the amount of money that you will receive after all deductions. The deductions are made from the CTC and include things like income tax, Professional tax, Public Provident Fund (PPF), etc. Net salary is usually lower than the gross salary.

Detailed explanation-2: -Net salary, more commonly known as Take-Home Salary, is the income that the employee actually takes home once tax and other such deductions are carried over with. It refers to the in-hand figure that is calculated after deducting Income Tax at source (TDS) and other deductions as per the relevant company policy.

Detailed explanation-3: -Figure out the take-home pay by subtracting all the calculated deductions from the gross pay, or using this formula: Net pay = Gross pay-Deductions (FICA tax; federal, state and local taxes; and health insurance premiums).

Detailed explanation-4: -File a TDS refund claim when the employer deducts more tax than the actual liability. You can claim the difference amount by filing an income tax return. Provide the bank account number, name of the bank, and Indian Financial System Code (IFSC) details for successful processing.

Detailed explanation-5: -Take-home Salary = Gross Salary – Income Tax – Employee’s PF contribution (PF) – Professional Tax. Gross Salary = CTC – Employer’s PF contribution (EPF) – Gratuity.