New Delhi, July 6 -- A Rs.30 lakh annual salary does not mean your entire income is taxed at 30% in the new tax regime. The income tax follows a progressive slab structure, where only the income falling within each slab is taxed at the applicable rate.

Moreover, salaried individuals under the new tax regime also get a standard deduction of Rs.75,000, which reduces their taxable income before tax is calculated.

As a result, someone earning a gross salary of Rs.30 lakh pays an effective tax rate of around 15.86% and not 30%. Let's find out why.

Before calculating tax, salaried individuals under the new tax regime can claim a standard deduction of Rs.75,000. As a result, although the employee earns Rs.30 lakh, tax is calculated only on Rs...