ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Net salary is the amount of money an individual takes home after all deductions have been made, whereas, the gross salary can be defined as the figure that is obtained by totalling all benefits and allowances without deducting tax.

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: -After you have both numbers, divide your take home pay by your gross pay, and then multiply the result by 100. This gives you your take home pay as a percentage of gross pay per pay period. It’s also worth mentioning that this percentage can vary throughout the year if you receive any bonuses or work any overtime.

Detailed explanation-4: -Net amount is the total amount of something after taxes and other deductions have been taken into account. In accounting, net amount is often used to refer to the total revenue or profit after all expenses have been paid.

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. Gratuity = (Basic salary + DA) × 15/26 × No. of years of service. More items