ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Gross salary is the monthly (or annual) salary paid to an employee without any tax deductions. Basic salary is the salary paid to an employee before the addition of any benefits like allowances or perquisites. Gross salary includes bonuses, overtime pay, allowances, and other perks.

Detailed explanation-2: -Gross salary, however, is the amount paid before tax or other deductions and includes overtime pay and bonuses. For instance, if an employee has a gross salary of Rs. 40, 000 and a basic salary is Rs. 18, 000, he or she will get Rs.

Detailed explanation-3: -For companies, gross income is interchangeable with gross margin or gross profit.

Detailed explanation-4: -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.

Detailed explanation-5: -The gross salary corresponds to the total payments received by the employee under his employment contract, prior to any deduction of compulsory employee contributions. It includes payments paid under employee savings schemes (profit-sharing and incentive schemes).