Tax-free Salaries to Corporate employees

Hi Kunjan,

No company can pay tax-free salaries to any of its employees—whether directors or other officers. Section 200 of the Companies Act forbids that:[Prohibition of tax-free payments:200. (1) No company shall pay to any officer or employee thereof, whether in his capacity as such or otherwise, remuneration free of any tax, or otherwise calculated by reference to, or varying with, any tax payable by him, or the rate or standard rate of any such tax, or the amount thereof.]As such, there's no idea reaching for a calculator and working out the figures.Thanks,CA Sanjeev Bedi--- In

ICAI_CIRC_MEERUT_ CA@yahoogroups. com, "Kunjan Choksi" wrote:>> Dear Members> > In case of a company where the salary to director is paid exclusive of> taxes. Say Rs 5 Lac p.m and the taxes are to be borne by the company.> > What is the total income & the total tax liability. Could any member please> illustrate.>