12 March 2015
Payment of Remuneration or Dividend to director which is beneficial to company as well as director, as director as taxable in the bracket of 30%
12 March 2015
Dividend has to be paid to all the share holders. The company has to pay dividend distribution tax. Dividend is paid from post tax income. So to pay divided to director the company has to pay more than 50% tax(30% IT and 20% dividend tax). When remuneration is paid no tax payable by the company and also it is a claimable deduction. Whereas only 30% tax is paid by director on remuneration. So from both company as well as directors point of view salary payment is best option.
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