A social media person not too long ago shared that he’s confused about whether or not he ought to take a ₹75 lakh every year job supply or not. The person mentioned that he’s not sure of taking the supply as a result of excessive tax legal responsibility in India.
He mentioned that he pays round ₹12 lakh in taxes, and the determine would go as much as practically double at ₹22 lakh if he takes up the brand new supply.
“I at the moment earn 48 lakhs yearly in India, with 20 years of expertise. I’ve not too long ago obtained a proposal for ₹75 lakhs. Whereas it is a vital leap, I am debating whether or not to just accept it or not — primarily as a result of steep rise in tax legal responsibility. At current, I pay round ₹12 lakhs in taxes. With the brand new supply, that determine practically doubles to ₹22 lakhs, particularly due to the extra 10% surcharge relevant on earnings above ₹50 lakhs,” the person mentioned in a Reddit submit.
He additional mentioned that the brand new compensation construction doesn’t present any flexibility to incorporate tax-saving parts.
“So, whereas my take-home pay might enhance by roughly 50%, the tax burden virtually doubles. It raises a basic query for me: why ought to I work considerably more durable simply to pay extra to the federal government, with out receiving any extra tangible advantages in comparison with those that pay little or no tax?” the person requested.
The submit ignited a debate on social media, with some netizens empathising with the unique poster’s expertise.
“Sadly it’s the way it works whenever you’re within the greater brackets specifically as a salaried individual. If doable, perhaps you’ll be able to negotiate them to not be employed however paid as a marketing consultant, you then’d be capable to save an enormous quantity however not taking a pay elevate since you don’t wish to pay greater to the government is simply hurting your self to harm somebody that doesn’t even really feel the pinch,” a person commented.
A second person wrote: “It’s a one time cliff. It’s nonetheless higher for you financially. Publish that, let’s assume your annual hike is 10%. 10% of 75L is 56% greater than 10% of 48L. And it compounds with yearly. What are you even pondering. Duh.”
“So… You take dwelling 50% extra pay than you might be proper now, however you do not need that since you’ll be paying extra in taxes? Give me your issues, bro,” a 3rd person mentioned.
A fourth person noticed: “Will there be a major affect in your work life steadiness or your peace of thoughts? If not, there may be absolute benefit in taking on the supply. If you will undergo each day by accepting the supply, you’ll be able to plan in any other case.”
India’s new earnings tax regime, ranging from April 1, 2025, presents zero tax on earnings as much as ₹4 lakh and progressive charges starting from 5% to 30%. Furthermore, taxpayers with earnings as much as ₹12 lakh (₹12.75 lakh for salaried class) would pay zero tax resulting from greater rebate and normal deduction.
It, nonetheless, excludes deductions underneath sections like 80C or HRA. The outdated regime, non-obligatory, begins at ₹2.5 lakh and permits numerous deductions. Surcharges apply for high-income people.
