How to use a corporate account to lower taxes drastically
A comprehensive 🧵 :
Collaborated with @niki_poojary
Here's what you'll find in this thread:
1. Forming a Private Ltd Company
2. How you get surcharge benefits
3. Loans
4. Paid up Capital
5. NBFC license required?
6. When should you think about opening a company?
Let's go: ↓
1. Make a Pvt Ltd Company.
Form a company with family members and trade under it.
The family members should be directors of the company. Will explain why later.
Why form a company?
You will only need to pay 25% flat tax.
Individuals have to pay 30% tax above 10 lakh profits.
2. Surcharge Benefits:
You will be charged a lower surcharge in a corporate account.
Check the picture below:
Total Tax Outlay:
The total tax outlay for individuals is 30% plus surcharge.
If you really earn a lot (10 cr +) then you will be paying 42% tax.
Whereas in a company you'll be paying a maximum of 28% tax.
This is how rich people save a lot of their money by paying low taxes.