Two employees with identical CTC can take home meaningfully different amounts — purely because of how the package is structured. The same logic applies to director remuneration.
Levers that still matter
- Reimbursement components: telephone, books, certain allowances — tax treatment depends on structure and actual usage, and on which regime you choose
- Employer retirement contributions: provident fund and pension contributions enjoy favourable treatment within notified limits
- Perquisite planning: company assets, meal benefits and similar items follow valuation rules that can beat cash equivalents
- Regime interaction: many exemptions matter only under the old regime — structure and regime choice must be planned together
For director-owners specifically
The salary-vs-dividend-vs-interest mix across you and your company changes total tax at both levels. This is the highest-leverage planning conversation most owner-managers never have.
The guardrail
Every component must be real, documented and actually operated — paper structures collapse in assessment.
We design remuneration structures as part of tax planning — get yours reviewed.
