Joannes dad makes $54, 000 every year. This is the amount of money he makes before taxes, insurance and other deductions are taken out of his paychecks. The amount of money he makes before these items are taken out is called his-

MONEY MANAGEMENT

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Joanne’s dad makes $54, 000 every year. This is the amount of money he makes before taxes, insurance and other deductions are taken out of his paychecks. The amount of money he makes before these items are taken out is called his-

A	Gross income
B	Net income
C	Income tax
D	Property tax

Explanation:

Detailed explanation-1: -As per Budget 2023, Salaried taxpayers are now eligible for standard deduction of Rs. 50, 000/-under new tax regime also from Financial Year 2023-24.

Detailed explanation-2: -Children Allowances Such allowance received by the employer towards children’s education is exempt from tax. However, the employee can claim a maximum of Rs.100 per month as an exemption or Rs.1, 200 per annum. The exemption is allowed for a maximum of 2 children.

Detailed explanation-3: -Investments in Public Provident Fund (PPF), National Savings Certificate (NSC), mutual fund Equity-Linked Savings Scheme (ELSS), tax saver fixed deposits. Contributions made to National Pension Scheme (NPS), Sukanya Samriddhi Yojana (SSY) Interest on home loans. Medical insurance premium.

Detailed explanation-4: -Taxable Salary Income = Salary (-) Exemptions (Exempt allowances + Standard deduction +Professional Tax) Net taxable income= Taxable Salary Income (-) Deductions under chapter VIA. 01-Mar-2023

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ECONOMICS (CBSE/UGC NET)

ECONOMICS

MONEY MANAGEMENT