Salary vs dividend — owner extraction
Salary is deductible to the company and taxed once (at your slab). Dividend is paid from post-corporate-tax profit and taxed again at your slab. The optimal split depends on your marginal rate.
Tax-optimal split: 100% salary / 0% dividend.
Combined company + personal tax at that split: ₹3,14,080.
Net to owner after personal tax: ₹9,37,600.
| Salary % | Combined tax | Net to owner |
|---|---|---|
| 0% | ₹5,65,760 | ₹9,37,600 |
| 10% | ₹5,40,592 | ₹9,37,600 |
| 20% | ₹5,15,424 | ₹9,37,600 |
| 30% | ₹4,90,256 | ₹9,37,600 |
| 40% | ₹4,65,088 | ₹9,37,600 |
| 50% | ₹4,39,920 | ₹9,37,600 |
| 60% | ₹4,14,752 | ₹9,37,600 |
| 70% | ₹3,89,584 | ₹9,37,600 |
| 80% | ₹3,64,416 | ₹9,37,600 |
| 90% | ₹3,39,248 | ₹9,37,600 |
| 100% | ₹3,14,080 | ₹9,37,600 |
Guide: running a private limited company →
NOT financial advice - seek advice from a professional for your specific situation
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