hello seniours... i want exactly know abouy gross salary n net salary. regards sanchita
From India, New Delhi
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From India, New Delhi
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Gross salary is the sum total of your basic/fixed salary, dearness allowance, travel allowance, HRA, city compensatory allowance, and any other special allowances like telephone, etc.
Net salary would be the final amount in hand after the deduction of statutory taxes like Income Tax, your PF contributions, your loan deductions - housing, motor vehicle loans, and Professional Tax, if applicable.
Illustration: Let's say your total emoluments are 25,000/- per month. In that case, the bifurcation would be as follows:
- Basic salary: 10,000/-
- Dearness pay/allowance: 6,000/-
- HRA: 5,500/-
- Travel/commutation allowance: 1,000/-
- CCA: 800/-
- Special allowance: 700/-
- Telephone allowance: 1,000/-
Your GROSS SALARY = 25,000/-
Deductions:
- Income tax: 2,000/- per month
- CPF contribution: 5,000/-
- Housing loan advance: 3,000/-
- Professional tax: 300/-
Total deductions = 10,300/-
Therefore, your net income would be Gross salary minus Deductions:
i.e., 25,000 - 10,300 = 14,700/- (Net salary)
I hope this explanation helps you understand.
Regards,
SP Tripathi
NPC India
From India, New Delhi
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2Net salary would be the final amount in hand after the deduction of statutory taxes like Income Tax, your PF contributions, your loan deductions - housing, motor vehicle loans, and Professional Tax, if applicable.
Illustration: Let's say your total emoluments are 25,000/- per month. In that case, the bifurcation would be as follows:
- Basic salary: 10,000/-
- Dearness pay/allowance: 6,000/-
- HRA: 5,500/-
- Travel/commutation allowance: 1,000/-
- CCA: 800/-
- Special allowance: 700/-
- Telephone allowance: 1,000/-
Your GROSS SALARY = 25,000/-
Deductions:
- Income tax: 2,000/- per month
- CPF contribution: 5,000/-
- Housing loan advance: 3,000/-
- Professional tax: 300/-
Total deductions = 10,300/-
Therefore, your net income would be Gross salary minus Deductions:
i.e., 25,000 - 10,300 = 14,700/- (Net salary)
I hope this explanation helps you understand.
Regards,
SP Tripathi
NPC India
From India, New Delhi
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Gross Salary(1).xls