ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Gross pay refers to the total amount of money an employee earns before any deductions are made, such as taxes or benefits. Net pay, on the other hand, is the amount of money an employee takes home after all deductions have been made.

Detailed explanation-2: -Deductions from Gross Salary For calculation of Income Tax, gross salary minus the eligible deductions are considered. For example, you will have to deduct HRA exemption, any home loan EMI, investments under sections 80C and 80D, and similar such things for the calculation of taxable income.

Detailed explanation-3: -Gross Salary is employee provident fund (EPF) and gratuity subtracted from the Cost to Company (CTC). To put it in simpler terms, Gross Salary is the amount paid before the deduction of taxes or other deductions and is inclusive of bonuses, overtime pay, holiday pay, and other differentials.

Detailed explanation-4: -Gross amounts refer to the total amount of something, generally business or individual income, before any taxes, deductions, or costs, in the case of a business.

Detailed explanation-5: -Gross income includes your wages, dividends, capital gains, business income, retirement distributions as well as other income. Adjustments to Income include such items as Educator expenses, Student loan interest, Alimony payments or contributions to a retirement account.