Salary or dividend

180 views 1 replies

Vedangi Deshmukh

112 Points Joined March 2017

A company has Rs 50 lakhs which is to be distributed either dividend or salary between 2 directors.

Whether to distribute Rs 50 Lakhs as salary or dividend so that would be more beneficial in the hands of directors and company...??

Replies (1)

Eswar Reddy S

CFO- at NHTF

58280 Points Joined August 2012

It depends on many factors.

If it is Pvt ltd and if share holders are directors and if their salary for the AY-2020-21 is more than 10lacs then you may go for dividend route and pay DDT..

But it depends on year, salary category, whether directors are share holders?

So only shareholders get the dividend not the directors unless directors are share holders