ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Budget
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Debt
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Gross Income
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Net Income
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Detailed explanation-1: -Net salary is the total salary one gets after all the mandatory deductions such as taxes that are made from the total gross salary. This is the total amount that gets credited to the bank account of the employee after all the deductions are done.
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: -As per Section 192, the employer is required to deduct tax at source on the amount payable at the average rate of income tax. This is to be computed on the basis of rates in force for the financial Year in which payment is made.
Detailed explanation-4: -It is the amount that employees take home after deducting provident funds, insurance, etc. The components of gross amount include House Rent Allowance, Conveyance Allowance, and Medical Allowance, among others. The components of net income include Income Tax, Professional Tax, Provident Fund, Pension, etc.