ECONOMICS
INCOME DISTRIBUTION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Net income is the full amount of money a person earns and gross income is the amount of money people earn after they have paid tax
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Net income is the full amount of money a person earns and gross income is the amount of money people earn after they have paid tax and all their bills
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Gross income is the full amount of money a person earns and net income is the amount of money people earn after they have paid tax
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Gross income is the full amount of money a person earns and net income is the amount of money people earn after they have paid tax and all their bills
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Detailed explanation-1: -While gross salary is an employee’s salary without any deductions, net salary, commonly known as take-home salary in India, is the income that an employee takes home after all deductions are made, such as income tax at source (TDS) and deductions according to company policies.
Detailed explanation-2: -Gross pay is what employees earn before taxes, benefits and other payroll deductions are withheld from their wages. The amount remaining after all withholdings are accounted for is net pay or take-home pay.
Detailed explanation-3: -What is Gross vs Net? Gross means the total or whole amount of something, whereas net means what remains from the whole after certain deductions are made.
Detailed explanation-4: -On your pay stub, gross income is your total income before taxes and deductions are subtracted. Net income is your take-home pay-or the amount of money left over after deductions and taxes are withheld. Net income deductions can include taxes, employee benefit premiums and wage garnishments.
Detailed explanation-5: -Gross income is what you make before any deductions. Net pay is what is left after taxes, health benefits, and other deductions are taken out of your check.