A social media user recently shared that he is confused about whether he should take a ₹75 lakh per annum job offer or not. The user said that he is unsure of taking the offer due to the high tax liability in India.
He said that he pays around ₹12 lakh in taxes, and the figure would go up to nearly double at ₹22 lakh if he takes up the new offer.
“I currently earn 48 lakhs annually in India, with 20 years of experience. I’ve recently received an offer for ₹75 lakhs. While it’s a significant jump, I’m debating whether to accept it or not — primarily due to the steep rise in tax liability. At present, I pay around ₹12 lakhs in taxes. With the new offer, that figure nearly doubles to ₹22 lakhs, especially because of the additional 10% surcharge applicable on income above ₹50 lakhs,” the user said in a Reddit post.
He further said that the new compensation structure does not provide any flexibility to include tax-saving components.
“So, while my take-home pay may increase by roughly 50%, the tax burden almost doubles. It raises a fundamental question for me: why should I work significantly harder just to pay more to the government, without receiving any additional tangible benefits compared to those who pay little or no tax?” the user asked.
The post ignited a debate on social media, with some netizens empathising with the original poster’s experience.
“Unfortunately it is how it works when you’re in the higher brackets specially as a salaried person. If possible, maybe you can negotiate them to not be employed but paid as a consultant, then you’d be able to save a big amount but not taking a pay raise because you don’t want to pay higher to the govt is just hurting yourself to hurt someone that doesn’t even feel the pinch,” a user commented.
A second user wrote: “It is a one time cliff. It is still better for you financially. Post that, let’s assume your annual hike is 10%. 10% of 75L is 56% more than 10% of 48L. And it compounds with every year. What are you even thinking. Duh.”
“So… You’re taking home 50% more pay than you are right now, but you don’t want that because you’ll be paying more in taxes? Give me your problems, bro,” a third user said.
A fourth user observed: “Will there be a significant impact on your work life balance or your peace of mind? If not, there is absolute merit in taking up the offer. If you are going to suffer daily by accepting the offer, you can plan otherwise.”
India’s new income tax regime, starting from April 1, 2025, offers zero tax on income up to ₹4 lakh and progressive rates ranging from 5% to 30%. Moreover, taxpayers with income up to ₹12 lakh (₹12.75 lakh for salaried class) would pay zero tax due to higher rebate and standard deduction.
It, however, excludes deductions under sections like 80C or HRA. The old regime, optional, starts at ₹2.5 lakh and allows various deductions. Surcharges apply for high-income individuals.
