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Salary of director

manjeeta modi (Student CA Final ) (234 Points)

02 August 2016

could a director receive salary every month

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3 Replies

(Guest)

Yes he can receive salary in every month. If his remuneration is taxable then must be deduct tax at source.

manjeeta modi (Student CA Final ) (234 Points)
Replied 02 August 2016

A cluse in income tax is that " a director received 11% of pofit ". how can a director received salary every month. please explain.

(Guest)

Profit is different thinks in a Private limited company.

Companies Act 2013

As per companies Act 2013 Director Remuneration in any company whether private or public company, should be fixed as per provision prescribed in Articles of Association. However In some cases Articles of Associations Require that Remuneration should be fixed by passing special resolution in annual general meeting by the shareholder. Further in case of Private Company there is no ceiling limit of 11% of profit of financial year as prescribed in section 197.