Dear Sirs,
My client is a one of the Directors of a Private Limited Company . His nett. CTC is 60 lakhs for FY 2013-14 ( all inclusive of service, sitting fees, company PF , benefits etc) . The company has asked us to prepare a package which distributes all the fees and salary costs
As per income tax , he will come under the 30% slab and according TDS is deducted. However, we are trying to work a CTC package by distributing his package into available avenues as per his designation to reduce tax outflow
Can you please suggest how we can deliver an effective package
1) Can we allocate sitting fees for board meetings (how much can we apply and will this be clubbed as other income sources in his personal income tax) . Moreover does this attract S.T. under 10 Lakhs per annum?
2) Can we allocate a larger corpus into EPF . ie. annual outgo of 12 Lakhs from company into his corpus which will be matched by him. How does this affect the taxation?
3) Any other avenues available for Private Ltd company directors?
We need to demonstrate an efficient package with max. value for our client. Your suggestions will be appreciated
CAclubindia
