Why Salaried Professionals Pay More in Taxes

Business Business

Posted by AI on 2025-09-10 12:13:43 | Last Updated by AI on 2025-09-10 15:12:27

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Recent analysis by CA Meenal Goel reveals a surprising trend among India's salaried workers. It seems that high earners are moving away from traditional salaried jobs towards consultancy arrangements for increased flexibility and surprisingly, tax savings. However, this shift comes with its own set of income and compliance risks.

Taxes are a mandatory part of life, and as such, everyone has to pay their fair share. But, salaried professionals may be in for a rude surprise come tax season. According to a recent analysis by CA Meenal Goel, some high-earning Indians are choosing to leave salaried positions in favor of consultancy arrangements.

This shift, CA Meenal Goel suggests, is due to the inherent flexibility of consultancy work and an apparent tax advantage. Goel states that individuals can earn less as consultants while paying the same, or even less, tax compared to their previous salaried jobs.

However, this shift comes with its own set of risks. Consulting arrangements may lack the security of a regular salary and any losses, expenses, or investments should be managed directly by the consultants themselves. Despite the potential risks and added administrative burden, Goel's review highlights that many high earners are willing to take matters into their own hands in order to maximize their incomes and protect their earnings from excessive taxation.

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