How Company Save the Income Tax by Payment of Director Salary | Tax Saving | Company Tax Saving Tips

As a law-abiding citizen, it is a moral duty to pay the taxes which are a fee charged by the government on a product, service, or income. Every citizen earning something is required to pay the tax which he cannot and must not avoid. However, the amount of the tax payable can be reduced by a proper tax planning for both the directors and the company.
One can lower your total tax outflow by accounting for all payables, permissible exemptions, deductions, and reliefs available to you under the Tax Act. Hence, tax saving activity is part of the whole tax planning exercise, whereby you as a tax payer can reduce your total tax liability.
The Liability of the Director in a Company is limited to the sum invested in the Company but simultaneously he is liable to pay taxes on the salaries or remuneration he draws from the company. When the company pays salary or remuneration to the director, it is a way for the company to save tax.
• A director is a person who looks after the performance of the company and administers a particular part of the company
• Easiest way of saving tax is to give salary to their directors.
• As the founder of the company, instead of sharing the profit as a dividend, you can share the profit as salary.
• Salary is the allowable expense of a private limited company
• Hence for example if a company is making a profit of rs. 4 lakh, company can pay salary to to directors, say 2 lakhs to each director.
#TaxSaving #TaxSavingTips #DirectorSalarySaveTax #taxationist #TaxationistCorporateConsultants #TaxLawyerInRawalpindi #TaxConsultantsInRawalpindi
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Short Company Profile:
Taxationist Corporate Consultants is a key regional player in tax, corporate consulting and advisory services field within the Pakistan; providing top notch services to the various sectors. Taxationist's services are grouped into four main categories:
Tax
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Accounting
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𝓞𝓯𝓯𝓲𝓬𝓲𝓪𝓵 𝓔𝓶𝓪𝓲𝓵:: [e-mail]
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Presenter Profile:
Mr. Khurram Shahzad Aslam is authorized tax practitioner licensed by Federal Board of Revenue [FBR], CMA (Fin) and member Rawalpindi Islamabad Tax Bar Association [RITBA], emanates with extensive past ten years of experience in construction, retail, development sector, telecom and consultancy services with world’s renowned big-wigs like KPMG, RSM International and WTS Global.
Socialize:
𝓦𝓱𝓪𝓽𝓼𝓪𝓹𝓹: [phone]
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[@abumuaviyah]

بہترین وضاحت

[@taxationistcorporateconsultant]

Thanks 😊

[@navedlawassociates6347]

Excellent Sir ❤️

[@HilightsSalon]

Hye what about salon registration what you suggest for small home based beauty salon,?

[@taxationistcorporateconsultant]

if no specific requirement, sole-proprietor is best and economic to maintain.

[@izhardawer]

Can salary be paid annually? Not monthly end of year only.

[@SheryMalik936]

Sir i have 2 questions.
1. Is there any limit of director salary?
2. In AOP do partners get salary or something else do save the company tax? Please reply thanks

[@ashutoshgautam3293]

Partnership firm me profit ke 60% Tak ki hi salary Bina tax diye li jaa sakti he, halaki baad me uspar salary slab rate tax lagta he. Kya esi hi koi restrictions director ki salary par bhi he private company ke case me.

[@khan.sisters]

👍👌

[@rafayabbas2866]

can you guide about double taxation on smc pvt ltd

[@waqarenterprises]

sir single member co per tax rate kia hay

[@taxationistcorporateconsultant]

29%

[@altafamirali4946]

Thank you Khurram Sb for your informative video. But Sir, Directors will also file their income tax return, He may even get a refund from it

[@abdulsamadvlogsandinfo360]

Yes

[@taxationistcorporateconsultant]

Can't get refund.

[@muzammilkhalid2240]

kiya single member company pr bhi director Dividend and salary lay sakta hai?

[@taxationistcorporateconsultant]

Yes