Tax
Income tax slab
Quick answer
The tiered rate system where higher chunks of your income are taxed at higher percentages.
India taxes income in slabs. The first chunk is tax-free, the next is taxed low, and each higher band is taxed more.
A common myth is that crossing a slab taxes all your income at the higher rate. It doesn't. Only the amount inside each band is taxed at that band's rate.
So a raise never leaves you with less money in hand. Only the extra income above the threshold gets the higher rate.
For example
In the new regime, income up to ₹3L is nil, and only the portion above each threshold gets taxed higher, not your whole salary.