Salary structure
This query is : Resolved
04 April 2008
Hi,
We are paying 50000/- per month as director remuneration to MD.Can you suggest salary structure to reduce tax burden.
We are paying 50000/- per month as director remuneration to MD.Can you suggest salary structure to reduce tax burden.
S.Srinivasaraghavan
(Expert)
05 April 2008
1) Is he paying rent?
2) Has he been provided with any perks?
3) Contributory benefits are there or not?
2) Has he been provided with any perks?
3) Contributory benefits are there or not?
VIPUL BHANDARI
(Expert)
05 April 2008
you have to provide me some basic information about his investments in PF, LIC, ELSS & Others
if He is paying rent, Then how much
so accordingly i can prepare the salary structure for u
if He is paying rent, Then how much
so accordingly i can prepare the salary structure for u
05 April 2008
YES.DETAILS LIKE RENT,OTHER PERKS,ETC.. MAY BE GIVEN TO ADVISE A SALARY STRUCTURE.
MEANWHILE,SOME CORPORATE SALARY PRACTICES / STRUCRURES ARE GIVEN BELOW .
1.IF YOU SO WISH , 50% OF M.D SALARY CAN BE PAID TO THE WIFE OF M.D APPOINTING HER AS PROFESSIONAL CONSULTANT OR RETAINER(IF SHE FITS INTO SUCH CATEGORY AND DOES NOT HAVE SUBSTANTIAL OTHER SOURCE OF INCOME TO TAX) ON WHICH 10.30% TAX IS ATTRACTED.
2.IF M.D HAS OWN HOUSE , THE SAME CAN BE TAKEN ON LEASE BY COMPANY AND PAY HIM LEASE RENT.THE SAME HOUSE MAY BE PROVIDED AS COMPANY PROVIDED HOUSE TO M.D AS A PERK IF THE COMPANY INTENDS TO GIVE HIM SUCH A BENEFIT.
3. DEDUCT TAX APPLICABLE ON ENTIRE SALARY WHICH THE COMPANY DECIDES TO PAY THE M.D.
SOME ENTITIES REIMBURSE TAX DEDUCTED (AS A REWARD FOR CONTRIBUTION OF SENIOR EXECUTIVES ) IN SOME OTHER FORM IN THE NAME OF SOME EXP.
APPLICABILITY OF SCH XIII AND SEC 269/310/309/349 /350 OF COS.ACT MAY ALSO BE COMPLIED .
R.V.RAO
MEANWHILE,SOME CORPORATE SALARY PRACTICES / STRUCRURES ARE GIVEN BELOW .
1.IF YOU SO WISH , 50% OF M.D SALARY CAN BE PAID TO THE WIFE OF M.D APPOINTING HER AS PROFESSIONAL CONSULTANT OR RETAINER(IF SHE FITS INTO SUCH CATEGORY AND DOES NOT HAVE SUBSTANTIAL OTHER SOURCE OF INCOME TO TAX) ON WHICH 10.30% TAX IS ATTRACTED.
2.IF M.D HAS OWN HOUSE , THE SAME CAN BE TAKEN ON LEASE BY COMPANY AND PAY HIM LEASE RENT.THE SAME HOUSE MAY BE PROVIDED AS COMPANY PROVIDED HOUSE TO M.D AS A PERK IF THE COMPANY INTENDS TO GIVE HIM SUCH A BENEFIT.
3. DEDUCT TAX APPLICABLE ON ENTIRE SALARY WHICH THE COMPANY DECIDES TO PAY THE M.D.
SOME ENTITIES REIMBURSE TAX DEDUCTED (AS A REWARD FOR CONTRIBUTION OF SENIOR EXECUTIVES ) IN SOME OTHER FORM IN THE NAME OF SOME EXP.
APPLICABILITY OF SCH XIII AND SEC 269/310/309/349 /350 OF COS.ACT MAY ALSO BE COMPLIED .
R.V.RAO
07 April 2008
..He stays in his own house
..he is not provided any perks
..there are no contributory benefiets.
..he is not provided any perks
..there are no contributory benefiets.
Gayathri Devi
(Expert)
10 April 2008
Then no deduction for rent
He wont get any deduction
We can claim allowances up to certain limits
He wont get any deduction
We can claim allowances up to certain limits
Selvakumar Selvaraj
(Expert)
10 February 2010
Dear friend! Start from Perquisits reduce all the exempted max perquisites and the balance you divided it into Basic and HRA. HRA could be 50% of the Basic.
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