POSTED BY November 22, 2012 6:56 pm COMMENTS (2)ON
I currently work in a softare company and at the end of the year including the variable payout (if any) would be hitting the highest tax bracket. I have been reading articles on the internet regarding creation of a Private Limited company.
I am aware that if I were to invest in a monthly/quarterly fixed deposit that income would be clubbed with my annual salary and be taxed.
Assuming that I have a corpus of lets say 10 Lakhs, would it be appropriate to create a private limited company and have this money transferred to this company and then start a fixed deposit which will generate a monthly income.
I would like to know if it would be beneficial in creating a private limited company to avail tax benefits on this income, the hassles of creating this company, etc.
Woud appreciate you valuable response.