Companies Must Report Employee Benefits as 'Remuneration' Per Section 198; Avoid Unnecessary Net Pay Columns.

The circular addresses discrepancies in how companies report employee particulars under the Companies (Particulars of Employees) Rules. It clarifies that "remuneration received" should encompass all expenses incurred by the company in providing benefits or amenities to employees, aligning with the definition in section 198 of the Companies Act. Companies are instructed to report salaries and perquisites based on actual expenditures. The circular notes that some companies incorrectly add columns for net pay after tax deductions, which is not required by the rules. Compliance with the specified reporting requirements is emphasized.