Treatment of salary

Others 505 views 3 replies

Dr. Jones

Director

253 Points Joined July 2009

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?

Replies (3)

Guest

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

CA PGDFM BCom

1831 Points Joined June 2010

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!

33521 Points Joined November 2008

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