ENTREPRENEURIAL PLANNING
FINANCIAL PLANNING AND ANALYSIS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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after you pay your bills for the week
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after taxes and deductions
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before taxes and deductions
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before you pay your bills for the week
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Detailed explanation-1: -Take-home pay is the net amount of income received after the deduction of taxes, benefits, and voluntary contributions from a paycheck. It is the difference resulting from the subtraction of all deductions from gross income.
Detailed explanation-2: -Take Home Salary = Gross Salary-Income Tax-Employee’s PF Contribution(PF)-Prof. Tax. Gross Salary = Cost to Company (CTC)-Employer’s PF Contribution (EPF)-Gratuity. Gratuity = (Basic salary + Dearness allowance) × 15/26 × No. of Years of Service.
Detailed explanation-3: -For example, your Cost To Company (CTC) is Rs 8 lakh. The employer gives you a bonus of Rs 50, 000 for the financial year. Then your total gross salary is Rs 8, 00, 000 – Rs 50, 000 = Rs 7, 50, 000 (the bonus is deducted from the Cost to Company). Gross Salary = Rs 8, 00, 000 – Rs 50, 000 = Rs 7, 50, 000.