monthly disposable income is calculated by
monthly disposable income is calculated by
Homework Answers
General disposable income refers to income which can be used for invest, save, spend after payment of tax.
So, monthly disposable income is calculated by deducting income tax from the net income. The income so derived is used for following reasons :
1. Investments
2. Savings
3. Spending etc.
But disposable income includes payments to necessities.
I.e., Disposable income is calculated by deducting income tax but before deducting payment towards necessities.
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