Net or take-home salary is the money an employee receives after all deductions from their gross salary. These deductions typically include income tax, employee contribution to provident fund, professional tax, and other statutory deductions.
Net salary = Gross Salary – Deductions
where:
Assume the following:
Take home salary = Gross Salary – Deductions
= Rs. 100,000 – (20% * Rs. 100,000) – Rs. 12,000 – Rs. 2,000
= Rs. 76,000
Therefore, the take home pay in this case is Rs. 76,000.
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