BUISENESS MANAGEMENT
TAXES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Your take home pay after taxes
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Your total income before taxes.
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Either A or B
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None of the above
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Detailed explanation-1: -Net salary, more commonly known as Take-Home Salary, is the income that the employee actually takes home once tax and other such deductions are carried over with. It refers to the in-hand figure that is calculated after deducting Income Tax at source (TDS) and other deductions as per the relevant company policy.
Detailed explanation-2: -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-3: -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.