Total tax paid
₨ 1,500
Did you know your employer also pays tax on your salary? It costs the employer ₨ 1,250 to pay you ₨ 9,870. In other words, every time you spend ₨ 10 of your hard-earned money, ₨ 1.52 goes to the government.
Real tax rate
13.5%
So, with you and the employer both paying tax, what used to be a 2.5% tax rate now rises to 13.5%, meaning your real tax rate is actually 11% higher than what it seemed at first.