Dr. Jones (Director) (253 Points)
22 December 2012
I am the owner and Director in my Private Limited Company.
Each month a draw a salary from this company. Is it OK if the salary amount is not constant each month.
For example:
June - 15000
July - 0
Aug - 25000
Sept - 25000
Oct - 30000
Will it create any problem as long as I declare my total salary in my IT return?
You can pay salry either monthly remuneration or as fees for per meeting, in case of fees per meeting there is no limit you can pay any amount, but in case of Monthly salary you need to follow schedule XIII.
Read more at: /forum/director-salary-clarification-168453.asp#.UNUiUeRtjmk
C.A. Sandeep Wawhal
(Chartered Accountant PGDFM BCom.)
(1823 Points)
Replied 22 December 2012
You have to declare your salary in return of income. Finaly your monthly salary would be "total salary taken throughout the year devided by 12."
@VaibhavJ
(Believe!! Live your dreams!)
(33511 Points)
Replied 22 December 2012
hi
if you are drawing salary then it should be consistent every month, in this case you can average out & fix the monthly salary..
Remeber salary need to be accrued at the end of every month for all working employees & should be credited to their loan a/c if not paid in your case to prove payment of salary..
thanks
CAclubindia
