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The second most important thing about a new job or assignment is naturally; are you getting a good deal? We assume that the most important thing is that you like what you do and that’s why you are doing what you do!

► Solutions to general issues

► Solutions to specific issues

► Best way forward

Solutions to general issues

The implication of tax is higher on a salaried person if salary is not structured properly. At one end there is reason to rejoice for the rise in salaries on the other end there is worry of tax implications on this growth. More reason to be cautious if you have income arising from different / multiple countries. Our salary restructuring services answers this and many other questions…as follows;

Often we face the following general issues:

• Is you new employer providing you a tax friendly and optimal salary package?
• Is you flexible benefits plan structured optimally? Or what’s the best plan you can do for your benefits plan?
• Is you IT declaration proper? Are you giving the company all the required information & not missing out anything?
• Are you making the best of your cashflows in the yearly declarations?
• Are you using medical / conveyance / reimbursements / HRA / LTA benefits appropriately & suitable to your situation?
• Is it better to take company car lease or buy your car personally without the company in the picture?
• File your returns properly; most people are simply careless and can face much trouble later

Solutions to specific issues

These days with rising salaries, ESOPs, company benefits, reimbursements, other facilities the salary structures might be more complicated than before. Some specific issues we face might be:

• Is your package in your best interest?
• What parts of package choices are best for you and your family? Eg. To choose club membership or fund retirement needs, To take 2^nd company car or shore up parents contingency funding etc
• Is the ESOP overshadowing your net in hand?
• Is the quantity of ESOP appropriate vis-à-vis your salary given the statusco the company and the industry?
• If you have statutory investment funds in multiples countries what should be the best way forward? Eg. 401k of USA, CPF of Singapore?
• How do you report income of offshore investments?
• If you have income accruing in multiple countries what might be the impact in each country?
• Which country are you filing tax returns in?
• Have you / your CA taken into consideration double tax avoidance treaty provisions?
• If you have reimbursements in other currencies how should you manage that and what should be the treatment especially if you are filing returns in India?
• Are you missing out something?
• Want us to help you negotiate better?

It is so critical for you to file returns properly to avoid complications later such as scrutiny, non-disclosure of income, concealment of income, short payment of taxes etc. These things can have grave consequences. The worst thing you might do is to appoint the CA’s representative who comes by your desk and files your return for some Rs. 300 or so!

Best way forward

Tax per se is one deciding factor for salary restructuring. But as you have probably understood from the points above there is much more to think and ponder upon. A properly modelled salary plan and good management thereof could have a very positive and long term implications on savings and investments too. One needs to analyse and study the salary structure properly. Then preview it with respect to household income and future needs. Then develop a salary structure that optimises net return and needless to say compare salaries for the best structured one if you are lucky to have multiple offers.

Salary Structuring cannot be a standard defined service and the solution for each situation can be quite different.