MANAGEMENT

Detailed explanation-1: -The portion of money received by an employee after the total amount has been withheld for state and federal tax deduction is fundamentally what ‘’net pay” stands for. Therefore, to put it in layman’s terms, the amount of money that comes in an individual’s paycheck is what net pay is.

Detailed explanation-2: -Taxable income is the amount of income subject to tax, after deductions and exemptions. For both individuals and corporations, taxable income differs from-and is less than-gross income.

Detailed explanation-3: -Income between ₹5 and ₹7.5 lakh, reduced to 10% tax from 20% Income between ₹7.5 lakh to ₹10 lakh, reduced to 15% from the current 20% Income between ₹10 lakh to ₹12.5 lakh, reduced to 20% from the current 30% Income between ₹12.5 lakh to ₹15 lakhs, reduced to 25% from the current 30%

Detailed explanation-4: -For FY 2022-23, the limit of the standard deduction is Rs.50, 000 in the old regime. As per Budget 2023, salaried taxpayers are now eligible for a standard deduction of Rs.50, 000 under the new tax regime also from the financial year 2023-24.

Detailed explanation-5: -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.