Through a notification issued here, the DCA has stated that in any financial year if the company has no profits or its profits are inadequate, it may pay remuneration to a mangerial person by way of salary, dearnessallowance perquisites and any other allowances, not exceeding ceiling limit of Rs 24 lakh per annum or Rs 2 lakh per month.

Under the amended notification, companies with effective capital of less than Rs 1 crore will be allowed to pay montly remuneration of Rs 75,000.

Companies with effective capital of Rs 1 crore or more, but less than Rs 5 crore, the monthly remuneration payable to managerial person will not exceed Rs 1 lakh. In the case of companies with effective capital of Rs 5 crore or more but less than Rs 25 crore, the managerial remuneration shall not exceed Rs 1.25 crore. In the case of companies with effective capital of Rs 25 crore but less than Rs 100 crore, the ceiling has been fixed at Rs 1.50 lakh. For companies with effective capital of a company being Rs 100 crore or more, the monthly managerial remuneration shall not exceed Rs 2 lakh.