KCSE MATHEMATICS QUESTIONS AND SOLUTIONS ~ Topically Analyzed
KCSE Mathematics Questions With AnswersDemystifying Gross Tax and Gross Salary in Relation to Income TaxThe Difference Between Gross Tax and Gross Salary in Relation to Income Tax Gross tax and gross salary are two terms that are often associated with income tax calculations. Understanding the difference between these two terms is important in order to grasp the concept of income tax more effectively.
Taxable income is derived from the gross salary by subtracting any allowable deductions, exemptions, or tax credits that the individual is eligible for. These deductions and exemptions may include items such as business expenses, contributions to retirement plans, educational expenses, or certain personal deductions. The difference between gross tax and gross salary can be understood as follows: Gross salary is the total income earned by an individual, whereas gross tax is the total amount of tax liability based on that income before any deductions or exemptions are taken into account. It is important to note that after calculating the gross tax, the final tax liability is determined by applying any applicable tax credits or deductions. The resulting amount is the net tax, which represents the actual amount of tax owed by the individual. In conclusion, the difference between gross tax and gross salary lies in the fact that gross salary refers to the total income earned before any deductions, while gross tax refers to the total tax liability before any deductions or exemptions are applied. Understanding these terms helps in comprehending the calculation and impact of income tax on an individual's earnings. Related Questions
0 Comments
Leave a Reply. |
Categories
All
Archives
December 2024
Latest Posts |
We Would Love to Have You Visit Soon! |
Hours24 HR Service
|
Telephone0728 450425
|
|
8-4-4 materialsLevels
Subjects
|
cbc materialsE.C.D.E
Lower Primary
Upper Primary
Lower Secondary
Upper Secondary
|
teacher support
Other Blogs
|