ECONOMICS (CBSE/UGC NET)

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: -In commerce, net income is what the business has left over after all expenses, including salary and wages, cost of goods or raw material and taxes. For an individual, net income is the “take-home” money after deductions for taxes, health insurance and retirement contributions.

Detailed explanation-3: -Net income, also known as net profit, is a single number, representing a specific type of profit. Net income is the renowned bottom line on a financial statement.

Detailed explanation-4: -Take-home salary or the In-hand salary is the amount which the employee receives after the tax, and other deductions are carried over. The difference between gross and net salary is that the salary that includes the income tax, professional tax, and other company policy deductions subtracted from the gross salary.

Detailed explanation-5: -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.