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by ghoul2
34 days ago
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There is a hilarious one in the Indian direct tax (Income tax) code right now: If your (taxable) income is less than 7L (inr), no tax is assessed.
If your income is greater than 7L, but upto 12L, tax is assessed, but a tax _rebate_ (a discount on payable tax) is granted for the exact amount of tax owed. This means net tax paid till 12L is zero.
But if your income is 12L + 1, this rebate no longer applies, so the entire tax assessed (on the 7L+ income) is now due. This means that a person who earns 12L+1 INR makes ~70K inr less, post-tax, than the person who earns 12L INR. After complaints, to correct this, they added another layer: If your taxable income is >12L but less than 12L+~70K (the tax thats due), then the maximum tax due is just the amount your income exceeds 12L bye. So you stagnate at the same post-tax salary from 12L to 12L+70K. |
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