directors remuneration

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Querist : Anonymous

Querist : Anonymous (Querist)

01 September 2010 in case of pvt company there is no limit in paying directors remuneration as per companies act, my question is there any limit under income tax act, if no limit then pvt company will avoid paying tax by showing major of the expenses as directors remuneration

Ankur Garg

Ankur Garg (Expert)
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01 September 2010 As far as limit is concerned only companies act is applicable.

However the matter of tax implication is different. So wait for other experts to comment.

Thanks

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CA PRAMOD SARAOGI

CA PRAMOD SARAOGI (Expert)
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03 September 2010 There is no such limit prescribed under the Income Tax Act. However, reasonability and excessiveness of the expenses incurred and the legitimate need of the business is to be kept in mind to avoid any disallowance U/s 40A(2)

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