What will be the in-hand salary with a package of 2 crores from IIT?

Ok , let’s deep dive into this question.

Let’s take an example of Amazon

CTC = 2 Crores.

Base salary = 1 Crore

Generally, base salary is 1 Cr..And it’s not in-hand.. several tax will be deducted from that…

US tax = 30%

H1B visa Tax = 10%

So, total tax deduction on base-salary = 40%

Every non US citizen has to pay this H1B tax.

So, Total tax ammount = (1 Cr * 40% )= 40 lac

Now, In-hand salary = (1 Cr — 40 lac) = 60 lac

Now, let’s calculate , your monthly Expenditure ;

1. Rent = $1400
2. Internet(500 Mbps) = $95
3. Utility & Electricity = $100
4. Mobile = $40
5. Grocery = $400
6. Travel = $500
7. Weekend + shopping = $700
8. Extra cost =$200

So, total monthly expenses = $3435 /month

total annual expenses = ($3435 * 12) = $41220 /year

So, convert USD to INR = ₹30 lac (approx).

Now, what’s about your total yearly savings ;

(In-hand — expenditure) = (60 lac— 30 lac) = 30 lac.

Are you feeling depressed? Here is the twist..

Don’t worry, that’s just cash ammount. The RSU part is still remaining..

You will get $600,000 ammount of Stock initially which can be sold after 4years..

$600,000 = ₹ 4.5 Cr (approx).

With that, you will be given $60,000 as joining bonus, which is around = 45 lac.

So, After 4 years of working in Amazon , you can save around = (30lac * 4)+ 4.5 Cr = 5.7 Cr. 🌟