Mr. Johnson received textsterling1, 750 on his paycheck for two weeks. He got textsterling275 taken out of his check for taxes and textsterling125 for his health insurance. The amount he had left is defined as his-

TAXES

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

Mr. Johnson received £1, 750 on his paycheck for two weeks. He got £275 taken out of his check for taxes and £125 for his health insurance. The amount he had left is defined as his-

A	gross income
B	net income
C	income tax
D	property tax

Explanation:

Detailed explanation-1: -Money may also be deducted, or subtracted, from a paycheck to pay for retirement or health benefits. The amount of money you actually receive (after tax withholding and other deductions are taken out of your paycheck) is called your net income, or take-home pay.

Detailed explanation-2: -Your gross income minus all available deductions is your taxable income. Compare that amount to your tax bracket to estimate the amount you’ll owe before applying any available tax credits.

Detailed explanation-3: -Claim a tax rebate under section 87A if your total income does not exceed Rs 5 lakh. The maximum rebate under section 87A for the AY 2022-23 is Rs 12, 500.

Detailed explanation-4: -That means that your net pay will be ₹ 88, 000 per year, or ₹ 7, 333 per month. Your average tax rate is 12.0% and your marginal tax rate is 12.0%. This marginal tax rate means that your immediate additional income will be taxed at this rate.

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MANAGEMENT

BUISENESS MANAGEMENT

TAXES