The Taxberg
₹ 425,258
Net pay
₹ 60,000
Tax the employer pays
₹ 74,742
Tax you pay
Total tax paid
₹ 134,742
Did you know your employer also pays tax on your salary? It costs the employer ₹ 60,000 to pay you ₹ 500,000. In other words, every time you spend ₹ 10 of your hard-earned money, ₹ 2.69 goes to the government.
Real tax rate
So, with you and the employer both paying tax, what used to be a 14.9% tax rate now rises to 24.1%, meaning your real tax rate is actually 9.2% higher than what it seemed at first.