Salary Structuring Guide: Save ₹3-5L Annually as Incorporated Creator

Yes, you can revise your salary structure anytime by passing a fresh board resolution. However, exemptions will apply proportionately. For example, if you implement HRA in October, you can claim exemption only for Oct-March (6 months). It's best to set up the structure at the beginning of the financial year (April).

If you're a director/owner of your own private limited company, EPF and ESI are typically NOT mandatory. However, if you employ other staff (20+ for EPF, 10+ for ESI), the company must register. For your own salary, PF is optional but can provide additional tax benefits if you choose to contribute.

Yes, you can employ your spouse and pay them a salary if they perform genuine work for the company. The salary must be reasonable for the work done, paid regularly via bank transfer, with TDS deducted. This is a legitimate tax planning strategy used by many businesses to split family income.

You can only claim exemption up to actual rent paid (minus 10% of basic). The excess HRA received becomes taxable. For example, if your HRA component is ₹50,000/month but you pay only ₹30,000 rent, your maximum exemption is ₹30,000 minus 10% of basic. The balance ₹20,000 is taxable.

Yes, LTA requires you to take leave and travel. Even if you're a director of your own company, you should maintain a leave record showing you took leave for the travel. The journey must be for leisure/vacation (not business travel). Business travel expenses should be claimed as business expenses, not LTA.

NPS is locked until age 60 for retirement. However, partial withdrawals (up to 25% of self-contributions) are allowed after 3 years for specific purposes: children's education, children's marriage, home purchase, medical treatment. These partial withdrawals are tax-free. Early exit before 60 is possible but requires buying annuity with 80% of corpus (only 20% can be withdrawn).

You can make up for missed months by paying arrears, but this looks less professional and may invite scrutiny. It's best to set up a standing instruction or calendar reminder to pay salary on a fixed date every month. If you miss a month due to cash flow, document the reason and pay arrears with proper narration ("Salary arrears for [Month]").

Old regime is almost always better when you have a well-structured salary because it allows all deductions (HRA, NPS, 80C, etc.). New regime has lower rates but NO deductions. Run calculations on both regimes, but typically if you're claiming more than ₹2.5-3L in total deductions, old regime wins. Use our Tax Regime Calculator to compare.

This is common for content creators. Options: (1) Set a conservative monthly salary you can afford even in lean months, (2) Pay yourself salary + variable bonus (bonus is also tax-deductible for company), (3) Maintain a salary payable account—accrue salary monthly in books even if not paid, then pay when cash is available. Consult a CA for proper accounting.

Yes! HRA is for rented accommodation, home loan interest is for owned property. You can claim HRA if you live in a rented house (even in a different city from your owned property) and simultaneously claim home loan interest deduction (Section 24) on your owned property. This is a powerful tax planning strategy.

Both are fully taxable. Basic salary is the foundation on which other components (HRA, PF, NPS) are calculated. Special allowance is a plug figure used to reach total CTC after accounting for all other components. From a tax perspective, there's no difference—both are taxed at slab rates. Keep basic at 40-50% of CTC and rest can be special allowance.

Absolutely yes. A CA who understands creator businesses can save you 10-20x their fees in tax savings. They'll ensure: (1) Structure is optimized for YOUR situation, (2) All compliance is met, (3) Documentation is tax-audit ready, (4) Board resolutions are properly drafted, (5) TDS is calculated correctly. Budget ₹10,000-25,000 for this service annually—well worth it for ₹3-5L+ savings.