ECONOMICS (CBSE/UGC NET)

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: -The amount remaining after all withholdings are accounted for is net pay or take-home pay.

Detailed explanation-3: -Beneath the figure for gross revenue are all the expenses that must be deducted from it, including overhead, salaries, acquisitions, losses and material costs. The bottom line is the net revenue or net income, the figure–either profit or loss–left when all business costs have been deducted from the gross revenue.

Detailed explanation-4: -It is the monthly or yearly salary paid to an employee without any tax deductions. It is the salary paid to an employee before any fringe benefits are added to it. Gross salary is inclusive of bonuses, overtime pay, allowances and other differentials. Basic salary is the core of the salary received by an employee.

Detailed explanation-5: -To calculate net income after taxes (NIAT), take gross sales revenue and subtract the cost of goods sold. Then subtract business expenses, depreciation, interest, amortization and taxes. Whatever’s left is the NIAT.