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 ₨ 20,724. In other words, every time you spend ₨ 10 of your hard-earned money, ₨ 0.72 goes to the government.
Real tax rate
6.8%
So, with you and the employer both paying tax, what used to be a 1.2% tax rate now rises to 6.8%, meaning your real tax rate is actually 5.6% higher than what it seemed at first.