Tax savings and salary question for remote jobs
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!
You hv enuf investments from ur internship pay I reckon. You can “survive” in dubai with this salary. I am not sure what gives u the confidence that u’ll be able to negotiate or restructure the salary components. This is news to me coming from a fresher. Consulting CA would be best course of action. If u’ll be consultant then u can save a lot of taxes till 75 lpa
i probably won't be able to restructure it much because as I mentioned it's a bit rigid, but then essentially if the company is paying out the same amount in both scenarios can't they do it? And yes the salary is great, I didn't know 4 years ago that I could potentially earn this much (didn't know about remote or WFH or anything either but I guess covid changes that for all of us), I essentially meant with the word "survive" as in live super comfortably in a nice home which I luckily don't need right now.
No they can’t customise structure on case by case basis. Just imagine the headache and other troubles for their finance folks
Good job on the W
It's best to consult a CA. When I heard about US based remote startup, I thought salary must be around 50LPA. But given that you're a fresher, it's still pretty good pay. You've a long way to go buddy! 😃