Directors Salary

[RAVI SONI]

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/-.

[SPIROTECHHEATEXCHANGERS PVTLTD]

Dear Soni

as such no provision binding/ limit fix under the Companies Act on Pvt Companies but income tax department call justification to directors u/s 43B.

[DR.MARIAPPAN GOVINDARAJAN]

I agree with the submission of Sprirotech Heat Exchanges Private Limited

AI Summary

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.