ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The amount of money you actually receive (after tax withholding and other deductions are taken out of your paycheck) is called your net income, or take-home pay.

Detailed explanation-2: -Net income refers to the amount an individual or business makes after deducting costs, allowances and taxes.

Detailed explanation-3: -What’s the Difference Between Taxable Income and Net Income? Taxable income is the amount of income that is subject to income tax. Net income is the amount of income that is left after subtracting all of the company’s expenses, including income tax.

Detailed explanation-4: -The formula to calculate TDS on Salary is as follows: Income Tax Rate = Income Tax Payable (computed with slab rates) / Estimated Revenue for the financial year.

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.