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Restrictions on the amount of Salary for the Directors of Private Limited Company

Sheikh Zubair (Project Engineer) (30 Points)

12 January 2023

Hi,

Is there any restriction on the amount of Salary that can be paid to the directors of a Private limited Company?

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4 Replies

c.bakshi (practising company secretary) (3221 Points)
Replied 13 January 2023

No there is no limit.... maximum capping limit mentioned in the act. which can be doubled by passing special resolution

Krishna (Assistant) (633 Points)
Replied 13 January 2023

I think there is no limit on directors remuneration incase pf pvt ltd company but AO can apply the provision of sec. 40A(2) of income tax. sec. But in case of public company there is limit given us 197 of co. act.

T E SOUNDARARAJAN (fm) (24 Points)
Replied 21 January 2023

What is. a small company under section 2(85}

Jatin Bajaj (CS) (2928 Points)
Replied 25 January 2023

There is no specific limit of remuneration in a private limited Company. However if such Director is designated as Key Managerial Personnel pursuant to the provisions of section 203 of the Companies Act 2013, then such remuneration of key managerial personnel shall be approved by the Board of Directors by passing board resolution board meeting- section 203(2)