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directors remuneration

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Querist : Anonymous

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Querist : Anonymous (Querist)
01 September 2010 limits are not specifically mentioned in co. act 1956,then there are possibility that one can give higher remuneration to the directors and there by reduce the profits and thereby avoid tax payments.
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mohinder kansal

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mohinder kansal (Expert)
02 September 2010 YES IT IS ALSO A TOOL OF TAX PLANNING. HOWEVER, REMUNERATION PAID TO DIRECTORS IS TAXABLE IN THE INDIVIDUAL CAPACITY OF DIRECTORS. ALTHOUGH A REASONABLE AMOUNT SHOULD BE PAID TO DIRECTORS BY THE COMPANY AFTER AUTHORISING THE REMUNERATION IN BOARD MEETING. SECTION 40A(2)(b) SHALL BE APPLICABLE.
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CA Amit Joshi

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CA Amit Joshi (Expert)
02 September 2010 Agree with Mohinder Ji
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Querist : Anonymous

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Querist : Anonymous (Querist)
03 September 2010 YES THE ANSWER GIVEN BY MR MOHINDER KANSAL IS PERFECT, IT IS JUSTIFIABLE.

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