ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Net Pay
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Gross Pay
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Total Pay
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Available Pay
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Detailed explanation-1: -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-2: -What is the meaning of net pay? Net pay means take-home pay or the amount employees earn after all payroll deductions are subtracted from their gross pay.
Detailed explanation-3: -Gross income includes your wages, dividends, capital gains, business income, retirement distributions as well as other income. Adjustments to Income include such items as Educator expenses, Student loan interest, Alimony payments or contributions to a retirement account.
Detailed explanation-4: -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