MD11Engineer From Germany, joined Oct 2003, 14026 posts, RR: 62 Posted (8 years 11 months 5 days 20 hours ago) and read 1103 times:
I got an interesting offer for a contract in India, which would pay me about $8000,- gross per month. How much would I have left after tax and how high would the living expenses be (AFAIK, the place of work is in Delhi). How about medical insurance?
You can find more on Google, particularly expat sites. Essentially you will be taxed on your global income while residing in India, as is the case elsewhere. Your Indian pay is generally TDS (tax deducted at source) - what Americans call withholding; what you get is the approx post-tax income. Unless you dabble in various forms of investments locally your tax issues ought to be minimal, and your employer ought to have formal procedures to ensure you face no trouble. There is already or will soon be a facility to file returns online.
If you're going to be in Gurgaon though, you'll have some trouble commuting to/from Delhi because of the construction work on the eight-lane expressway connecting the two as well as Indira Gandhi Intl airport - it's due for completion sometime in mid 2006.
Your best bet is to ask the company to provide the details - they'll have tax boffins that will provide the right answer. The approximate answer is "66.5% will be left after tax", but you'll be surprised to find how often it's lesser than 66.5% left! That's because the actual salary figure ($8000) might be the CTC figure (cost to company), hence the salary might be slighly lesser (say $7500), with the balance going towards all sort of junk (Provident fund? Gratuity? Company car? All stuff you'll have a tough time to recover - if at all possible).
But assuming that your salary is in fact $8000 - you should have approximately $5320 as the salary in hand. I say approximately because the tax is not actually 33.5%, but a slab structure. But given your salary, you'll be basically all at the highest taxation slab.
Living expenses are tough to approximate - but I'd guess if you lead an "expat life" - then about Rs 100000 to Rs. 125000 per month is what you need to budget for. If you are OK with leading a regular Indian life (for instance no predictability on water/electricity!) - then your monthly expenses might be half that amount or less.
It's really not needed in India - since regular doctors/medicines are cheap and plentiful. What we do have on offer is "hospitalization cover" - for anything that will need you to spend 24hrs+ in hospital. The typical premium for that is going to be something like Rs.6000 or Rs.8000/year.
Feel free to shoot any other questions - and best of luck with your decision. The biggest risk of coming to India is that you might not want to leave