Director Remuneration of Section 8 Companies

Hello Everyone

I want to know that how much remuneration can be paid to the Director of  Section 8 Companies ?

Replies (6)
Quick Summary
This discussion clarifies the remuneration limits for directors in Section 8 companies. While generally reasonable amounts are permissible, specific restrictions under Section 13 of the Income-tax Act may apply, particularly if a director is also a member. The conversation also touches upon director salaries in private limited companies, noting no inherent restrictions but highlighting that higher salaries can be beneficial for tax authorities.

you can pay a reasonable amount. However, in case the director is also a member, then please follow the restrictions placed by section 13 of the Income-tax act.

@ Mr Nikhil Kaushik Sir...

Is there any restriction/limits for Pvt Ltd company to pay DIRECTOR SALARY...???

no. But in this case ie Section 8 company, there are restrictions placed in the Income-tax Act. 

Originally posted by : Nikhil Kaushik
no. But in this case ie Section 8 company, there are restrictions placed in the Income-tax Act. 

Okay sir thank You.

Yes, I asked other than sec 8company.

 

One more doubt...

In a pvt Ltd company one of a director is uneducated. He is the highest shareholder.

So, he received director salary and increased every year.

 

Is this possible...?

Is any issues face the company in future...???

no. there is no issue as such. Even from tax perspective, higher salary is good only for tax authorities! his education has no link to his salary. 

Thank You for the clarification Sir...


I can't understand this one "higher salary is good only for tax authorities!"

please clear this

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 17 August 2026
Article Assistant

Jain Ankit and Co

Gurgaon

CA Inter

View Details
Company
ARTICLESHIP 01 September 2026
Articles

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Foundation

View Details
Company
21 August 2026
Accountant

A G International

Kolkata

B.Com

View Details
Company
ARTICLESHIP 25 August 2026
CA Article's

Saini Pati Shah & Co LLP

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 26 August 2026
Article Assistant

ANIVESH CONSULTANTS LLP

Gurgaon

CA Inter

View Details
Company
13 August 2026
Chartered Accountant (FP&A)

Client of Trellis Consulting

Gurgaon

CA

View Details
Company
ARTICLESHIP 24 August 2026
Chartered Accountant Articles

Rohit KC Jain & Co

New Delhi

CA Inter

View Details
Company
27 August 2026
ACCOUNTANT

CHARUPREETI & CO

Noida

Graduate (Any)

View Details