Analyzing Microsoft Engineer's Take-Home Pay After Taxes: New Tax Regime Breakdown
Unlocking the secrets of India's new tax regime: how much can a Microsoft engineer like Kamala Gita Raman take home each month, and what does it mean for your career?
- Here are 23 clean bullet points summarizing the video:
- * Engineers can earn money, and the example used is a Microsoft Engineer with a CTC of 51 LPA.
- * The engineer's compensation breakdown includes:
- + Stocks worth $35,000 (adding up to ₹28 lakhs vested over 4 periods)
- + Relocation benefit: ₹3 lakhs
- * Total one-year compensation is ₹30 lakhs.
- * The new tax regime allows for no tax on salaries up to ₹12 LPA.
- * Assuming the engineer joined Microsoft on April 1st, a new financial year:
- + Tax would be applied only on ₹29,25,000 (remaining amount after applying no tax on first ₹75,000).
- - 4-8 lakhs: 5% tax (₹20,000)
- - 8-12 lakhs: 10% tax (₹40,000)
- - 12-16 lakhs: 15% tax (₹60,000)
- - 16-20 lakhs: 20% tax (₹80,000)
- - 20-24 lakhs: 25% tax (₹1 lakh)
- - Over ₹24 lakhs: 30% tax (₹1,57,500)
- * Total tax would be approximately ₹4.57 lakhs.
- * The remaining amount after taxes is approximately ₹25 lakhs.
- * Stocks worth ₹7 lakhs will not be sent to the bank immediately.
- * After one year of working, the engineer can sell the stocks and receive the amount vested.
- * The video highlights that when deducting tax from salary, it's treated as a part of the salary, whereas long-term investments have different tax implications.
- * The engineer would get approximately ₹1.5 lakhs at the end of the month (₹18 lakhs - 7 lakhs stock vesting).
- * After deductions, the engineer's monthly take-home pay is around ₹1.3-1.4 lakhs.
- Note: These bullet points focus on the main points discussed in the video, excluding the introduction and promotional content.
Source: Fraz via YouTube
❓ What do you think? What are the potential long-term implications for individuals like Kamala Gita Raman of the new tax regime on employee stock options and bonuses? Feel free to share your thoughts in the comments!