# Financial Planning for Software Engineers in India > Financial planning for software engineers in India: RSU and ESOP tax, the INR 50 lakh surcharge line, Schedule FA, idle cash and employer-stock risk. Source: https://trykosh.com/for/software-engineers Kosh for software engineers and tech professionals # Financial planning for software engineers on INR 2 lakh a month and up A INR 2 lakh-plus monthly salary at 25, RSUs from a US parent, maybe ESOPs at a start-up, and no one checking any of it. Kosh is a private CFO that reads your payslips and statements and keeps the tax, the cash and the concentration in view. ## What gets in the way ### The vest that costs 39% RSUs are taxed as salary when they vest. A big vest can push you past INR 50 lakh of income, and the 10% surcharge then applies to your whole tax, not just the RSU slice. ### ESOPs taxed before they're cash Exercising start-up options creates a perquisite taxed at your slab rate in that year, even when the shares can't be sold for years. ### Schedule FA you didn't know about Holding shares in a foreign brokerage account means reporting them every year in Schedule FA and filing ITR-2, even in a year you sold nothing. ### Cash piling up in a savings account Pay outruns spending, so lakhs sit idle earning less than inflation while you mean to get round to investing. ### One company, three bets Your salary, unvested RSUs and vested shares all depend on the same employer. If it has a bad year, all three fall together. ## What Kosh does about it ### Maps your real surplus Upload salary account and card statements. Kosh sorts every transaction and shows what's left each month after rent, EMIs and lifestyle. ### Works out tax with vests and bonuses in Kosh compares both regimes from your actual pay and shows how close you are to the INR 50 lakh and INR 1 crore surcharge lines. ### Keeps employer stock in proportion Track vested shares as part of your net worth and see how much of it rides on one company. ### Gives idle cash a job Each goal, from a home down payment to early retirement, becomes a monthly amount, so surplus moves on a schedule instead of sitting still. ### Reminds you before money is due Email reminders before advance-tax dates after a share sale, card due dates, SIPs and renewals. ### Answers in your numbers Ask the chat CFO what a 4,000-share vest does to this year's tax, and it answers from your payslips, not a rule of thumb. ## Free tools for software engineers and tech professionals [Free tool**ESOP tax calculator**ESOPs are taxed twice: once when you exercise, as salary, and again when you sell, as capital gains. See both.](/tools/esop-tax-calculator)[Free tool**Surcharge calculator**For incomes above INR 50 lakh: see your surcharge band, how much marginal relief saves you at the threshold, and your total tax with cess.](/tools/surcharge-calculator)[Free tool**Old vs new regime calculator**Find out which regime leaves you more money this year, and exactly how many more rupees of deductions the old regime would need to catch up.](/tools/old-vs-new-tax-regime-calculator)[Free tool**NPS tax benefit calculator**NPS is one of the few tax breaks left in the new regime. See what your employer's contribution and your own INR 50,000 save under each regime.](/tools/nps-tax-benefit-calculator)[Free tool**Capital gains tax calculator**Pick the asset, enter the purchase and sale dates and prices, and Kosh tells you whether the gain is short-term or long-term and works out the tax under the FY 2026-27 rules.](/tools/capital-gains-tax-calculator)[Free tool**Net worth calculator**Your net worth is everything you own minus everything you owe. Fill in the assets and loans Indian households usually hold to see the number, how it is spread and how much of it you could actually use.](/tools/net-worth-calculator)[Free tool**Emergency fund calculator**An emergency fund pays the bills if your income stops or a big unplanned cost lands. This calculator sizes yours from your essential spending, EMIs and how steady your income is, and shows a simple way to park it.](/tools/emergency-fund-calculator)[Free tool**FIRE calculator**FIRE stands for financial independence, retire early: having enough invested that work becomes optional. Enter your expenses and how much you invest to see your FIRE number and the age you could reach it.](/tools/fire-calculator) ## A CFO for software engineers and tech professionals. Upload a statement and Kosh maps your money, works out your tax and tells you the one thing to fix first. Free to start. [Start free](/signup?via=for-software-engineers) ## How tech pay is taxed Common parts of tech pay and when they're taxed, FY 2026-27, resident Component Taxed when How Salary and bonus When paid Slab rates through payroll TDS Employer NPS Not taxed up to 14% of basic in the new regime Deduction; employer PF, NPS and superannuation above INR 7.5 lakh a year together are taxable RSUs At vesting, then at sale Vest value as salary; gain after vest as capital gains ESOPs At exercise, then at sale Fair value minus exercise price as salary; later gain as capital gains US-listed shares you hold At sale and on dividends 12.5% long-term after 24 months, no INR 1.25 lakh exemption; slab rate before that Take a INR 40 lakh salary in the new regime: tax is INR 7,87,800. Add INR 12 lakh of RSUs vesting in the year and taxable income crosses INR 50 lakh, so total tax becomes INR 12,53,200. The vest costs **INR 4,65,400**, about 39% of its value. Ask HR to route 14% of basic into NPS and the same INR 40 lakh salary pays INR 7,00,440 instead. The [RSU taxation guide](/learn/rsu-taxation-india) and [ESOP taxation guide](/learn/esop-taxation-india) cover both stages, and [saving tax on a high salary](/learn/how-to-save-tax-on-high-salary) covers the surcharge lines. ## A plan for the first crore 1. **Know your real surplus.** Take-home minus actual spending, from three months of statements, not a guess. 2. **Hold six to nine months of expenses** in deposits or liquid funds. Variable pay and unvested RSUs don't count, and layoffs in tech come in waves. See [how much emergency fund you need](/learn/how-much-emergency-fund-do-i-need). 3. **Buy term and health cover of your own.** Group cover ends with the job. 4. **Sell vested employer stock on a rule,** for example at each vest or once it's above about 10% of net worth, and move it into a diversified allocation. See [wealth planning for high earners](/learn/wealth-planning-for-high-earners-india). 5. **Invest the surplus by goal,** with short-term money in debt and long-term money mostly in diversified equity, Indian and, if you choose, foreign. See [tax on US stocks](/learn/tax-on-us-stocks-india). 6. **File ITR-2 with Schedule FA** if you hold anything abroad, and pay advance tax after any large sale. [Free tool**ESOP tax calculator**ESOPs are taxed twice: once when you exercise, as salary, and again when you sell, as capital gains. See both.](/tools/esop-tax-calculator)[Free tool**Surcharge calculator**For incomes above INR 50 lakh: see your surcharge band, how much marginal relief saves you at the threshold, and your total tax with cess.](/tools/surcharge-calculator)[Free tool**Old vs new regime calculator**Find out which regime leaves you more money this year, and exactly how many more rupees of deductions the old regime would need to catch up.](/tools/old-vs-new-tax-regime-calculator)[Free tool**NPS tax benefit calculator**NPS is one of the few tax breaks left in the new regime. See what your employer's contribution and your own INR 50,000 save under each regime.](/tools/nps-tax-benefit-calculator)[Free tool**Net worth calculator**Your net worth is everything you own minus everything you owe. Fill in the assets and loans Indian households usually hold to see the number, how it is spread and how much of it you could actually use.](/tools/net-worth-calculator) ## Frequently asked questions How should a software engineer in India plan finances? Start from your real monthly surplus, keep six to nine months of expenses as an emergency fund, buy your own term and health cover, sell vested employer shares on a rule so one company doesn't dominate your net worth, and invest the rest by goal. Check the tax on vests and exercises before they happen. How are RSUs taxed for Indian employees? The value of the shares at vesting is taxed as salary at your slab rate, with TDS by your employer. When you sell, the gain over the vest-date value is a capital gain. Foreign-listed shares are long-term after 24 months and taxed at 12.5% without the INR 1.25 lakh exemption. Do I need to file ITR-2 if I have RSUs? If you hold shares or a brokerage account abroad, yes. Foreign assets must be reported in Schedule FA, which is not available in ITR-1. You also need ITR-2 if you have capital gains beyond small listed-equity gains. Does Kosh recommend stocks or funds? No. Kosh is not a SEBI-registered investment adviser and earns no commissions. It works out your tax, surplus, goals and concentration from your own numbers and explains categories, but never names a specific stock, fund or insurer. How much does Kosh cost? You can start free with one statement a month, a money summary, your top recommendation and 10 questions a month. Pro costs INR 2,000 a month or INR 19,999 a year, starting with a free seven-day trial, and you can cancel anytime. General information for planning, not tax, legal or investment advice. Kosh is an educational financial planning tool by Primedepth Labs. It is not a SEBI-registered investment adviser and does not offer personalised investment advice, hold your money or execute trades. Markets carry risk; read scheme documents carefully and consult a registered adviser before acting.