MANAGEMENT

Detailed explanation-1: -By subtracting all the eligible deductions from the gross taxable income, you will arrive at your total income on which you need to pay tax basis your tax slab. This slab rate is different for senior citizens. For those who are over 60 years old with up to Rs 3 lakh net income, the tax rate is nil.

Detailed explanation-2: -Income Tax, in this case, is deducted at source by the employer and is based on the gross pay of the employee. Also, basic salary of an employee should be at least 50%-60% of his/her gross salary.

Detailed explanation-3: -After you have both numbers, divide your take home pay by your gross pay, and then multiply the result by 100. This gives you your take home pay as a percentage of gross pay per pay period. It’s also worth mentioning that this percentage can vary throughout the year if you receive any bonuses or work any overtime.