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Bol de Bhai itna hai ki Jahan chahu roti kha sakta hu aur khila sakta hu.
It is only in India that people are so concerned about what others make. Abroad, it is considered rude to ask someone about their salary or finances for that matter.

You should politely say that you are not comfortable discussing this. Dont care about what they think.
It depends, if he/she is a stranger you can tell without hesitating maybe they can give a better advice or share about their experiences. But never tell to your relatives, if you think you're not earning enough. Although, you can flex if you are having a good job and salary.
First tell us who are these people? Your relatives, friends colleagues or some other?
What to do when people come up to me and ask about my salary? Do I have to tell it or not? And what perception do they make about me?