Got a 9.41% hike and it feels like I got nothing. Is this how the new tax regime works?
So I got my hike letter and was pretty happy at first. 9.41% on 12.53 LPA, so I'm going to around 13.7 LPA from October.
Then I actually sat down and did the math. Till 12.75L the new regime basically gives you zero tax because of the rebate. The moment you cross it, tax starts. So all my extra money is going straight into the tax slab. My monthly gross goes up by around 9.8k, but the take-home only goes up by about 2.7k.
Koi faida nahi hua bhai.
All those reels of people crying about Indian tax, I used to scroll past them. Now I'm the one crying.
I read that employer NPS (80CCD(2)) can bring the taxable income back down, and my company has the option. Has anyone here done it? Is it actually worth locking the money till 60 just to save the tax? Or is there something else I'm missing?
Also, did anyone else get a small hike and end up in the same situation? Just want to know if I'm the only one feeling this.