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/-.

AI Summary

Directors' Salaries in Private Companies: No Limit Under Companies Act, Justification Required by Tax Authorities Under Section 43B. A query was raised regarding the maximum salary permissible for directors in a Private Limited Company, where the current salaries are 100,000 and 10,000 for two directors. It was clarified that the Companies Act does not impose a salary limit on private companies. However, the income tax department may require justification for the salaries under Section 43B. Another participant agreed with this explanation, confirming that there is no statutory salary cap, but tax authorities may scrutinize the compensation.