Finance

Founder Compensation: Salary vs Dividend vs Director Fees

The 3-way split that reduces your effective tax rate by up to 12 percentage points.

Amit Kumar, CA5 December 20257 min read
Founder Compensation: Salary vs Dividend vs Director Fees

Salary attracts slab-rate taxation but is deductible for the company.

Dividends attract 10% TDS + slab-rate in your hands.

Director's sitting fees up to ₹1L per meeting — nice supplemental cash.

The optimum split depends on your company profitability and personal tax slab.

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