I am planning to convert my partnership firm to a pvt limited company, then i came across some taxation complication that i thought of clarifying in this forum ,queries are given below :
1) Dividend Distribution tax is applicable for distribution of profit int he case of PVT limited also ? (there are 3 director/share holders )
2) I have roughly calculated the total tax as 25% for the company profit +15 % (SC+Cess) as dividend distribution tax + 10% of tax for the dividend receipt (if more than 10 lacs ) =about 50% !!! ,is this calculation is correct in the case of a pVT limited ?
3) If drawing the money as salary for the director then maximum tax will be only 28%,if so everybody will take this route !
22 March 2019
Thanks a lot sir for your reply ... One more clarification is required on maximum limit of salary for the directors , i understood that the limit is not applicable for PVT LTD. ,could you please clarify this ?