DIRECTORS REMUNERATION

This query is : Resolved

Share Report Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

31 May 2010 Can a company pay remuneration to its directors in cash?

Vignesh

Vignesh (Expert)
Follow

01 June 2010 Yes, can be paid in cash. there is nothing in companies act against it. So can be paid in cash.

Rider - In income tax act, if any payment made above rs.20,000 in cash will not or upto some percentage soem kind of exemption is not vailable.

Kinldy check the IT act or google search "income tax rs.20,ooo payment"

Regards,

Vignesh J

Kishen K Warrier

Kishen K Warrier (Expert)
Follow

01 June 2010 agree.

if payment aove rs.20000 complete disallowance under Sec 40A(3)of IT Act.

CA Suresh Kumar Agarwal

CA Suresh Kumar Agarwal (Expert)
Follow

01 June 2010 Agree

can not pay above Rs. 20000/- in cash becouse the same will be disallowed.

CMA Arif Farooqui

CMA Arif Farooqui (Expert)
Follow

05 June 2010 company can pay as their is nothing mention in Companies Act.
But cash payment is covered u/s 40A(3)of IT Act, so it will be disallowed while computing Company Income

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now