TaxTMI 
TaxTMI 
I have a query relating to a Private Limited Company.
What is the maximum salary that we can give to the existing directors of the company,
currently the monthly salary of Mr.A and Mr.B is ₹ 1,00,000/- and ₹ 10,000/-.
Directors Salary
30 Dec 2014 
2 Replies 
1628 Views Asked by
Directors' remuneration: private companies face no statutory salary cap, but must ensure tax justification and documentation.
There is no statutory ceiling under the Companies Act for directors' salaries in a private limited company; however, such payments may be scrutinised by the income tax department and require justification for tax deduction and timing purposes (noted in the discussion with reference to section 43B), so companies should ensure proper approvals and documentation. (AI Summary)
There is no statutory ceiling under the Companies Act for directors' salaries in a private limited company; however, such payments may be scrutinised by the income tax department and require justification for tax deduction and timing purposes (noted in the discussion with reference to section 43B), so companies should ensure proper approvals and documentation. (AI Summary)
