Tax
Income tax slab
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.