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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.

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