Such companies can claim a deduction equivalent to 30 per cent of the salary drawn of new full - time employees for the tenure of 3 assessment years. (policybazaar.com)
This is not as large as it sounds - typical contributions would only go up from 6 to 8 per cent of salary. (politics.co.uk)
At the high end, the tax loss is estimated at $ 1.7 - billion, which assumes 50 per cent of the salary income was not earned for real work performed, and the family member had a 15 - per - cent - lower marginal tax rate than the company owner. (theglobeandmail.com)