A social media user recently shared that he was confused as to whether he had to take a job offer per year or not from 75 Lakh per year. The user said he was not sure to take the offer due to high tax responsibility in India.
He said he pays about 12 lakh in taxes, and that the figure went up to almost 22 Lakh if he occupies the new offer.
“I currently win 48 lakhs per year in India, with 20 years of experience. I recently received an offer for 75 lakhs. Although it is a significant leap, I debate to accept it or not – mainly because of the sharp increase in tax liability. At present, I pay approximately ₹ 12 lakhs in taxes. With the new additional offer, which is more in ₹ 22 lakhs, in particular because Additional is more than Lakhs, “said the user in a Reddit post.
He also declared that the new remuneration structure does not provide any flexibility to include tax economy components.
“So, while my take-out salary can increase by about 50%, the tax burden almost doubles. This raises a fundamental question for me: why should I work much more difficult to pay more to the government, without receiving additional tangible services compared to those who pay little or no tax?” The user asked.
The position sparked a debate on social networks, some empathetic internet users with the experience of the original poster.
“Unfortunately, this is how it works when you are in higher hooks specially as an employee. If possible, you may be negotiating it so as not to be employed but paid as a consultant, then you could save a large amount but not take a salary increase because you do not want to pay higher in the government.
A second user wrote: “It is a unique cliff. It is even better for you financially. Posts this, suppose that your annual increase is 10%. 10% of 75L is 56% of more than 10% of 48L. And it is made up each year. What do you think. Duh.”
“So … you win 50% more salary than you are right now, but you don’t want this because you will pay more taxes? Give me your problems, Bro,” said a third user.
A fourth user has observed: “Will there be a significant impact on your balance between professional life and your peace of mind? If this is not the case, there is an absolute merit in adopting the offer. If you are going to suffer daily by accepting the offer, you can plan otherwise.”
The new income tax regime of India, from April 1, 2025, has no tax on income up to 4 Lakh and progressive rates ranging from 5% to 30%. In addition, taxpayers with income up to 12 Lakh (12.75 Lakh for the wage class) would not pay any tax due to a higher discount and a standard deduction.
However, it excludes deductions under sections like 80C or HRA. The Old Regime, optional, begins at 2.5 Lakh and allows various deductions. Supplements apply to high -income people.
