Does India use progressive tax brackets?

Yes, India uses a progressive income tax system where higher portions of income are taxed at higher rates. This means your effective (average) rate is always lower than the top bracket rate because only the income within each bracket is taxed at that specific rate. For individuals under 60 using the new tax regime, the first INR 300,000 (roughly $3,600 USD) is tax-free. Income between INR 300,001 and INR 600,000 is taxed at 5%, and the rate jumps to 10% for income between INR 600,001 and INR 900,000. It continues to climb, reaching 20% for income between INR 1,200,001 and INR 1,500,000. The top marginal rate is 30.0% for income above INR 1,500,000 (approximately $18,000 USD). There are also surcharges for very high incomes, which can push the total tax burden even higher. For example, if your taxable income is INR 2,000,000, only the portion above INR 1,500,000 is taxed at 30%. Understanding these brackets is key for anyone considering working in India. Always calculate your effective tax rate to get a true picture of your take-home pay.