Not all Rs 22 lakh salaries are equal: CA explains the math of survival and the one factor that increases the value of your income in India

For years, Indians have been told that crossing a certain income number is the finish line. One of the most repeated claims is that earning around Rs 22 lakh a year puts a person in the top 1 per cent of the country. On paper, it sounds like success has been unlocked. But according to chartered accountant Nitin Kaushik, this number hides a much more uncomfortable truth. In a recent thread on X, Kaushik broke down why the “top 1%” tag often creates a false sense of achievement, especially when income is discussed without context.

The problem with the ‘top 1%’ label

Kaushik calls the idea of the top 1 per cent a “statistical delusion” that keeps people stuck on what feels like a never-ending treadmill. He points out that while Rs 22 lakh a year may look elite in national data, real life works very differently.

“In a Tier-1 city like Mumbai or Bangalore, after a 30% tax bracket and a sky-high cost of living, that ‘elite’ income often buys a lifestyle that feels aggressively middle-class,” he wrote. Once rent, EMIs, schooling, transport, and daily expenses are accounted for, the gap between perception and reality becomes clear. The number stays impressive on spreadsheets, but daily life does not reflect it.


Kaushik stresses that income without geography is misleading. In wealth-dense regions such as Delhi, Goa, or Sikkim, the competition is not with the national average. It is with entrenched wealth, inherited businesses, and fast-moving capital. “The density of wealth in states like Delhi, Goa, or Sikkim is so concentrated that Rs 22 lakh barely gets you into the room — let alone a seat at the table,” he explained.

In such places, purchasing power weakens almost instantly. Expenses rise faster, expectations are higher, and financial breathing room shrinks.

The same salary, very different life

The contrast becomes sharper when the same income is viewed through a different regional lens. Kaushik highlights states like Bihar, Uttar Pradesh, and West Bengal, where Rs 22 lakh does not just mean comfort. “You’re wealthier than 99% of the local population,” he noted, adding that surplus money stretches much further. In these regions, investment capacity improves, leverage increases, and the ability to stay ahead of local inflation becomes stronger.

This is where the same salary transforms from survival money into growth capital. According to Kaushik, the idea of a single national benchmark no longer works. Remote work and digital careers have broken the link between where people earn and where they must live.

“The real shift is the death of the ‘national average,’” he wrote.

He summed it up simply: “A Rs 25 lakh salary in a high-cost hub is a survival strategy. That same salary in a high-growth, lower-cost region is a wealth-building engine.”

What actually defines financial freedom now

Kaushik argues that Indians have spent decades chasing higher CTCs while ignoring the denominator that matters most. “Wealth isn’t the number on your Form 16. It’s the gap between your income and the cost of your environment.”

If regional purchasing power parity is ignored, he says success is being measured on a broken scale. His conclusion is quiet but firm. True financial freedom is no longer about national percentiles. It is about understanding that where you earn and live now carries as much weight as how much you earn.

“The smartest move ahead may not be chasing a bigger paycheck in a crowded city — but taking a solid one to a place where it actually means something,” Kaushik wrote.