Home |Corporate Tax Returns | If my private limited company makes a profit of 1 lakh, can I take 1 lakh as bonus and show the company made zero profit this year?

If my private limited company makes a profit of 1 lakh, can I take 1 lakh as bonus and show the company made zero profit this year?

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Shyamal Modi Shyamal Modi, Tax Advocate | Financial Advisor | Virtual CFO verified
Answered on November 25,2021

Yes, a company can pay remuneration to its directors by way of salary/bonus or in any other name depending on the service rendered by the director. 

You, as a director, have to show such income received in your personal Income Tax Return, as the same is taxable in your hands.

But it is not recommended to nullify the profit of the company. You should show some profit so as to build a positive image of the company. Which will indeed help you in future in many ways!

Do contact for any query: +91 9033377645

Regards!

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