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Income/Funds of Pvt. Ltd.

18 April 2021 hello team,

if we have a company (pvt ltd) and make profit of 1 crore and give salary to 2 directors (5 lakh each). so my questions are:
- what happens with funds of 1 crore in bank account?
- if needed can that 1 crore be used by any director personal purpose? with permission of course.
- are there any strict limitations related to usage of company funds?

please answer and help, thanks a lot.

19 April 2021 Director can utilize the amount upto salary provided for. Anything above 5 lakhs will have to be considered as further salary.

19 April 2021 You can increase the remuneration of the directors. There is no such ceiling on remuneration for private limited companies.

19 April 2021 dear puja & raj, thanks for reply. So what you are suggesting is to increase Salaries for both directors. But then they'll have to pay taxes on that.

21 April 2021 Any help please.

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