Does your employer deduct tds based on Indian tax laws?......if not then well....... It's your shraddha to pay modiji or not

Haha and wait for ITD to catch hime one fine day with all those foreign remittances ?

Software Engineer

You can probably slide under the radar if you pay some tax and don't look fishy. Not sure if it will work but someone more pro in gaming the system is welcome to comment

Founder

@Createlife95 please share how to find such opportunities, once I start earning in dollars I will tell you how to save taxes. 
  
 Do we have a deal?

File as a consultant, or register a proprietorship. Speak with a CA, terms might vary based on your situation.

File a W-8 with your employer. India-US have a DTAA, so you won't be double taxed.  
  
 File your advance taxes in India per the slab - quarterly.  A good CA should be able to help you with this. 
  
 Don't even think of not paying the appropriate tax - you'll be in a lot of trouble.  Every remittance in India is reported and scrutinised. There is no escape.

Sales Manager

Welcome to Personal Finance's Private Community

How to save income tax when you for a US based startup and pays you in dollars?

Product Manager

How to save income tax when you for a US based startup and pays you in dollars?- Grapevine

Welcome to Moving Abroad's Private Community

I am currently working remotely for an American startup from India. I recently received my Visa and now have an option to move to US. I also have another job offer on-site in India that I am evaluating. 

My question is mostly on taxation and calculating in-hand salary. 

Current - 85 lacs base. Working as consultant. Registered GST. I am able to save tax and get to a post tax income of 75 lacs.
Savings 

New On-Site Indian offer - Base 98 lacs. 

My question is, what will be my post tax income while working as an employee in the Indian company.

Question on Taxation and Savings

How does your startup pay you? Most startups use Gusto or Ripling but they don’t seem to offer a way to get paid in $USD to an Indian account. The tax burden for a contractor ( with GST ) is high and is saddening to lose out on the benefit of no tax for service export ( when paid in USD only )

Have any of your figured out how to take salary denominated in $USD in an Indian account?

TC: 35+
YOE: fresher

For those who get paid in via INTL Transfer

Hello folks,
So I got an offer from a US based product company for remote role for Product designer.

This company just raised a seed funding.

They don’t have any office in India but their tech team and some of the people from leadership team (CxOs) are from India.

I’m confused whether to go with this offer or not.

Reason: 
1. Their interview process was too good to be true, it was very quick, no assignments given, they just saw the portfolio, ask some process related questions and then they agreed to give offer.

2. It’s a pure remote company with no plans to build office in India in coming future.

3. They have very small team, I’ll be working as 2nd designer only.

4. As per the current job market, I’m afraid about their future.

YOE : 3yrs
Hike that I’m getting is 50%

Help a fellow UX designer decide whether to go with this or not.

Need help to decide about job offer.

UX/UI Designer

Guys... I made some good decisions and ended up having an opportunity to pay myself 36 LPA but, that means, about 9.4LPA tax.

What do I do? I want to get a home loan so keeping a higher salary would make the banks happy but then I also lose almost half of it to taxes.

Any advice from high earners and other fellow startup founders?

Tax 😨😨😱

Alert: a rant post

Today I saw my payslip after a long time and WTH! I don't know what they'll take once bonus comes in. Paying this much for no water, bad air, corrupt babus and all those douche things.

As much as patriotic I am, this is just insane. On top of this add all the GST and sheet ton of other indirect taxes.

Living in India and paying like Europe. Wow!

Duck the government

Earning around 50 lpa at 24 is already a great feat. Still if u want to look at the dark side, nobody can help. This rant is more common than diabetes. Yet people will stress about same thing and rant to destress. Endless cycle. Either do something about it or bring some new perspective. P.S. I am in alignment with ur rant but I’ve made peace with the state of affairs as I am not looking to move out of India and I cannot strong arm govt. individually to change this.

Senior Product Manager

I recently got a job offer at a well-funded remote startup headquartered in the US as a DevOps engineer. They adjust the salary package to account for the country so I won't be earning in crores... but I wanted to ask people who are in remote positions as to how to negotiate a salary that will be rigid more or less,no options are there to negotiate till a super high margin (maybe 10% max).

For example, they are offering 33 LPA currently, does that put me in a higher tax bracket and can I negotiate for a lower compensation so that I can be put in a lower tax bracket, say I ask for 29 LPA and ask for a joining bonus (or HRA) or some restructuring to do that? 

I don't understand how taxes work in India especially with remote payments but I'm hoping someone can offer the right guidance and resources so that I can look into this in depth later on as well. This is my first ever job and I got it straight out of college, so I do not mind even if they are paying me less than their US counterparts. This salary is more than enough to survive in a tier 2 city (will be shifting back to live with my parents).

I don't have much investments right nos, just a couple of FDs and some equity + debt funds along with stocks (mostly banks + chemical companies here and there). I can look into ELSS funds and what not if that can save up some taxes. I am considering talking to a CA about this too.

(Note: not comfortable with naming it even if this is an anonymous platform because it has like a strength of 50 and I feel it is irrelevant to the discussion).

TIA!

Tax savings and salary question for remote jobs

Scrum Master

Welcome to Indian Startups's Private Community

I recently received an offer from a early stage startup. But they told that that pay in contractual basis. when asked about the reason they told that it helps the company and employees to save tax.

How does it work?
will it affect my future employment if I take this job? like if I join some other company will they accept that I was actually working fulltime.

The role is fulltime, but only the money transaction will happen as contractual.

How does Contract salary work for a fulltime role

What are some smart ways in which to minimize tax liabilities as a freelancer? Should I look at forming an HUF, sole proprietorship, PLC? 

Use Case - I am looking at remote opportunities with US startups and many of those pay their overseas teammates as independent contractors; not as employees. 

In such case where CTC > 40LPA fixed, what are some of the best tax saving hacks that one can execute?

TIA!

Best way to minimize taxes as a freelancer in India?

Analyst

Hi, I need some help from the finance experts.. I have been doing freelancing for a few months. Until now I was doing it on upwork and other freelancing sites and the amount was also lower (<1lac). Recently I was working with a client outside of the freelancing sites. The client will be paying me in dollars. For transferring the payment he said he will only do via wire transfer.  Now my question is which is the best way to reduce the taxes which I have to pay to the government. The amount will be >10lac. I am already earning more than 10lpa from my job so if I get that money in my account I'll have to pay more tax. On the other hand my parents earnings are not coming under the income tax slab. Should I directly transfer the amount in my account or to my parents account or should I create a msme and register it under GST? 

TIA 🙏

Need help in getting usd from a client.

Welcome to Software Engineers's Private Community

Anyone has an idea on how taxes work if you're working remotely for a foreign (say US) company. Is it like you are taxed both from the US and India? For those who are working in such companies, it will be great if you can shed some light here.

Remote US job, Indian Tax + US Tax

I wasn't doing proper ITR, I was in the family biz for the last 6 years, recently joined a startup and they don't have any proper salary composition. My current salary is 35L in hand (2.9L per month). Apart from HRA how do I save in taxes? is there an app which does it for you?

Taxes 101? 40+ LPA

While the starting salaries and salaries at <10 yoe have really sky rocketed and this is good for the ecosystem, wanted to understand what happens to salaries in tech/product post 15 yoe+. 

I’m curious about this especially because it doesn’t tie up with income tax data. Assuming seniors leaders in tech and product would be making 1 cr+ easily and most of these would have formal streams of income that can’t be hidden easily, income tax department reports only around 1.3 lakh individuals (2 year old data though) who had taxable income above 1 cr. Even if the number has risen to 2 lakhs now, it still doesn’t tie back to the stories here of many people making above 1 cr.

Is the income tax data wrong or are the salaries plateauing at around 80-90L or have people found some amazing ways of saving tax. Just curious!

Salary plateau at 15 yoe+?

1. Real estate (invested value)
2. Liquid cash
3. Other Investments (invested value)

The wealth should not be inherited.

I'm 30. No house, 10L in cash and 5L in mutual funds. No inherited weath.

How much wealth have you created yourself?

Seeing the comment section,I realise I am broke.

Frontend Engineer

Software Developer

I recently exercised my stock worth 1L. Stock is listed in NYSE. I was taxed 30% federal tax, and will be receiving 70k arpx in indian currency. 

Will I be charged tax in India as well ?

Tax on Exercised stocks

I need help deciding whether to be an Employee of a company or a contractor. 

When I am a contractor, I am basically stating my company is my client and am charging for my services. So responsibility of tax is on me. And I have heard that businesses can declare 50% of revenue of as expenses. Thereby saving alot on tax ( not that knowledgeable in this )

But being an employee, the company will handle the taxes ( I become an employee of an agency and my company hires me from this agency) 

Can you all please guide me what option should I take? How do freelancers handle their taxes?

Contractor or Employee?

I have got an individual contract offered by a company based out of Chicago. I want to know how this model works. 
1. Do I need to enable or inform my bank about the foreign payment coming in ?
2. Do I need to pay any income tax on this amount whole or if there is any slab after which I need to pay ?
3. How do I declare this amount in my ITR ?

Thank you.

Income Tax advice required for a Contract offered by a US based company.

Tech Lead

Team is less than 10 people still, slowly growing. Net profit could be higher, that's top priority to work on now. Total cash invested by founders was 15L over 3-4 years.

Yearly revenue :

2019 - less than 30k 
20 - 1.5L (after pivot)
22 - 50L

Getting to the first lakh and then to 10 lakhs was probably the most challenging part.

We thought of shutting down multiple times, struggled through multiple fights between founders. Glad we didn't stop working and pulled through.

This is my 4th or 5th attempt at starting up. Except for 1, other attempts didn't even get to incorporation stage.

Would love to hear from other bootstrappers and their experience.

Personal milestone: 1Cr in rev as a bootstrapper

We’re at about $400K bootstrapped with a team of 2 (me included), started in 2019. Revenue almost doubled in last 18 months. 
  
 My personal observation is that if you’re going to bootstrap, you need to go after high margin, niche markets (unless you’re doing services) because you don’t have a lot of money for marketing. 
  
 Our main growth channel is affiliates and SEO. Growth will be slow so we just have to keep at it. Also, beware of VC-funded competitors.

How to save income tax when you for a US based startup and pays you in dollars?

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