Earning in USD or INR: What’s Really Worth More? CA Explains
Earning more means little if inflation, taxes, and currency losses quietly eat away your wealth.
USD vs INR – Currency value India – Dollar to rupee – CA explains USD vs INR – TAXSCAN
USD vs INR – Currency value India – Dollar to rupee – CA explains USD vs INR – TAXSCAN
Chartered Accountant Nitin Kaushik, also known as @Finance_Bareek on X (formerly Twitter), recently shared a tweet raising an important question: Is it better to earn money in Indian Rupees (INR) or US Dollars (USD)? And more importantly, how much of what you earn do you actually get to keep?
He starts by explaining that if you’re in the US and have $1,000, inflation reduces its value over time. For example, with 5% inflation, that $1,000 is really worth only $950 a year later. Now, if you convert that money to INR, the value doesn’t just drop because of inflation. It also loses value because the rupee tends to weaken against the dollar every year—usually around 4–5%. That means you're losing on both ends: inflation and currency depreciation.
Some people might argue that salaries in India grow faster, so that makes up for it. And that used to be true. But now, as Kaushik points out, how many people are still getting 10% raises every year? Not many. And even if they are, taxes take away a big chunk—both income tax and the goods and services tax (GST) we pay on almost everything we buy.
Step by Step Handbook for Filing GST Appeals - CLICK HERE
Kaushik also points out that India’s savings-to-GDP ratio has hit a 50-year low. This means that even though people are earning more than before, they are saving less. Rising expenses, taxes, and slower salary growth are making it hard for people to hold on to their money.
Read More: GST Dept Probes Restaurants on Zomato, Swiggy Over Unpaid Tax on Packaging Charges
The main takeaway from his post is that it’s not just about how much money you make, but how much you get to keep after inflation, taxes, and currency changes. He ends with a thought-provoking question: are we really growing wealth, or are we just running hard to stay in the same place?
People reacted quickly. One user asked whether it’s better to earn in the US and invest in India, or vice versa. Another said the government should reduce income tax or lower GST rates because the middle class is struggling to save.
Complete Ready to Use PDFs of 200+ Agreements Click here
In the end, Kaushik doesn’t offer a simple answer. But he does encourage people to think more deeply about their finances. In today’s world, earning well isn’t enough. Knowing how to protect and grow that income is what really matters.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
