Section 217 (2A)

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S.K.Sharma

S.K.Sharma (Querist)
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11 June 2010 How to work out remuneration amount for the purpose of disclosure u/s 217(2A)

Is arrears paid in current year relating to previous year shall be part of current year remuneration

gratuity or post retired medical benefits provided in accounts based on actuarial valuation shall be considered for above working

Amount paid on retirement like leave encashment, gratuity lumsum shall be part of remuneration for the year

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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11 June 2010 Circular number 23/76 dated August 6,1976 says remuneration received means all expenses incurred by companies in providing any benefit or amenity to the employee and the word remuneration has the meaning assigned to it in section 198 of the Companies Act,1956.
In view of the above and as per my understanding of the issue:-
1) arrears should be included.
2) provision for gratuity / retirement benefits need not be included. But it should be disclosed by way of a note in the statement prepared under section 217(2A).
3) Payment on account of retirement benefits should be included.

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