Progressive tax system ensures individuals' incomes aren't taxed simply based on tax slab they fall in. Under this system, segments of a person's salary are taxed based on relevant tax slabs. A person earning ₹15 lakh has tax liability of ₹1.05 lakh (0% for ₹4 lakh+5% of ₹4 lakh+10% of ₹4 lakh and 15% of ₹3 lakh) under progressive system.