Mega Offer Avail 65% Off in CA IPCC and 50% Off in all CA CS CMA subjects.Coupon- IPCEXAM65 & EXAM50. Call: 088803-20003

CA Final Online Classes
CA Classes

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Income/Funds of Pvt. Ltd.


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.

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

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

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.

Any help please.



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


Similar Resolved Queries

loading





Trending Tags