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Basic Pay, Dearness Allowance, House Rent allowance, Professional Tax, Provident fund contribution are given to prepare the Pay Roll statement. Give the equation to calculate Net Salary. Gross salary = Basic Pay + Dearness Allowance + House Rent Allowance Total Deduction = Professional Tax + Provident fund contributionNet Salary = Gross Salary – Total Deduction |
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Answer» Net Salary Calculation: Step 1 – Calculate Gross salary by using the given formula. Gross salary /Gross Pay = Basic Pay + Grade Pay + Dearness Pay+ Dearness Allowance + House Rent Allowance + Any other Earnings. Step 2 – Calculate Total Deduction by using the following formula. Total Deduction = Professional Tax+ Provident Fund + Tax deducted at source + Loan Recovery + Any other deductions Step 3- Calculate net salary by the given formula. Net Salary = Gross salary – Total Deduction |
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