CA Forums

Hi ,

I am holding opc, I have small business turnover, how can I take the profit(post paying tax to govt) to my personal bank acnt from company account, without paying tax 2nd time(after transfering the profit to my personal account).

Thanks

If you are operating through an OPC, the company and you are separate taxpayers. After the company pays its applicable corporate tax, you can withdraw funds through legitimate routes such as salary/remuneration (if properly structured) or dividend, subject to the applicable Companies Act and tax provisions.

A dividend is taxable in the shareholder's hands, so it can result in another layer of personal taxation. Salary/remuneration, if properly paid and allowable as a company expense, is generally taxed as salary in your hands and reduces the company's taxable profit.

Therefore, there isn't a general method to simply transfer post-tax company profits to your personal account without any further tax. The most tax-efficient route depends on the OPC's profit, your other personal income and the amount you need to withdraw.

For an actual withdrawal, the exact treatment should be checked with a CA because remuneration, dividend, TDS and Companies Act compliance all need to be considered.