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Description

Gross salary per annum of the home country: 2,000,000.00 Income tax rate up to 10 lacs: 10% Income tax rate above ten lacs:30% Gross salary per annum of USA: 27,000.00 Federal income tax rate: 27% Calculation of disposable income of the home country =2000000.00-400000.00 Disposable Income of Home Country will be =1600000.00 Calculation of Personal Disposable Income in the USA =27000.00-7290.00 Disposable Income in USA will be =19710.00 Therefore, using the exchange rate given in the problem, 70, the disposable amount in-home units will be 19,710 x 70 equals 1,379,700