What is the onsite salary in software companies? Is the onsite salary in TCS more than other Indian Companies?
Onsite salary can vary from company to company and from designation to designation. A very appropriate figure for companies like TCS is 60K US Dollars per annum in US. In UK it should be around 1800 pounds (for ASE in TCS) British Pound per month. In Caritor the onsite salary is the lone component, i.e. no Indian base salary in case of onsite. If you are a joining as SE or SSE or TL then it would be 52K USD, PL 57K USD PM 63K USD and salary depends on the location, the above salary is for New Jersey, Arizona, in other places the salaries are much less.
What is the composition of onsite salary package?
You normally get the salary in US as well as Indian salary for the period you are in US.
It can also be expressed as living allowance plus Indian salary converted to USD. In companies like HSBC it is like HSBC accommodation + regular salary+ onsite allowance.
How much of onsite salary can be saved?
I have heard people say they can save 50,000 to 1 lakh rupees per month when in onsite. May not be completely true, as areas like Bay Area/ California are pretty costly in US, and average consumption per day can be 80 dollars (minimum), taking into account only normal cost of living. And don’t forget about taxation.
What about taxation? Do I have to pay the tax in both the countries?
Double Taxation mostly impacts those people who earn income outside India for some months in a financial year. E.g.: – A person was there in US for 8 months and in India for 4 months. Tax in US paid on the income of 8 months in US. Tax in India paid on the income of complete 12 months (not only 4). So, when a person comes back from US to India, huge amount of Tax is deducted. Mostly resulting in Net Salary of Rs 0. This additional tax of 8 months is paid firstly to the Indian government (due to some treaty). This additional tax will get refunded, when you file IT returns in India. It means a loss to a person as his money is lying with government and only God can track the status of IT returns in India!!! Nothing to worry though everyone will have a double taxation certificate and get their money back once they file IT returns along with the certificate.