Optimising Promoter Compensation and Tax
The promoters of a profitable healthcare-services group in Bengaluru were drawing income in a way that had grown up organically, without tax planning — an inefficient mix of salary, dividend, and informal drawings that increased their overall tax burden and complicated the company’s books.
A clear-eyed look at where they stood.
The promoters of a profitable healthcare-services group in Bengaluru were drawing income in a way that had grown up organically, without tax planning — an inefficient mix of salary, dividend, and informal drawings that increased their overall tax burden and complicated the company’s books.
CapEasy reviewed the promoters’ compensation, the company’s profit position, and the applicable provisions of the Companies Act and Income Tax Act. We redesigned the salary-and-dividend mix, formalised the drawings, and structured promoter remuneration to be tax-efficient while remaining fully compliant.
The outcome
The promoters reduced their overall tax burden and gained a clear, compliant framework for drawing income and distributing profits. The company’s books became cleaner and easier to plan around.
This describes work CapEasy delivered in a real engagement; the client’s name is withheld to protect their confidentiality. Outcomes vary by company, sector and stage; nothing here is a promise of a similar result. CapEasy is a private consultancy and is not affiliated with any government authority.