Q.1. medical allowance received 500 per month out of which 1000 incurred for medical treatment - so what amount i need to take for adding in 3rd column of salary math or you mean adding in gross salary
Q.2. *commission received 1% of turn over amounted Rs. 500000- so what amount i need to take for adding in 3rd column of salary math or you mean adding in gross salary
Q.3. And professional tax 130 per month - so it's employer or employe who paying?
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Explanation:
Ans .1: Net salary is the total salary one gets after all the mandatory deductions such as taxed 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.
Net salary, also known as take-home salary, is the amount of money that you will receive after all deductions. The deductions are made from the CTC and include things like income tax(TDS), professional tax, Public Provident Fund (PPF), etc.
Net salary is usually lower than the gross salary. However, the net salary and the gross salary can be equal if the individual earns a salary less than any of the amounts that are mentioned on the pre-determined tax slabs and the income tax that must be paid by the individual is zero.
Ans.2: Sales people often receive a commission, or percent of total sales, for their sales. Their income may be just the commission they earn, or it may be their commission added to their hourly wages or salary. The commission they earn is calculated as a certain percent of the price of each item they sell. That percent is called the rate of commission.
ans.3:When you take a look at your payslips, you will notice a small deduction mentioned on it, along with the other components like HRA, conveyance and basic salary break ups. This deduction is usually around Rs. 200 and is termed as professional tax. Generally, this type of tax varies from state to state and in certain places, you may realise that there is no deduction made under this heading. Let’s begin by answering the most basic question- “What is professional tax?”
What is Professional Tax?
Professional tax can be defined as a tax that is levied by a state government on all individuals who earn a living through any medium. This must not be confused with the definition of other professionals such as doctors or lawyers. This is a type of tax that needs to be paid by each and every individual earning income. The calculation of this tax and the amount collected differs from one state to another. However, the limit has been set to Rs. 2500 per year.