Basis for determination of director’s remuneration ‑ Condition restricting travelling/daily allowance to limits laid down in Income‑tax Rules ‑ Whether to be imposed while giving approval under the section - Companies Law - No. 5/75,

Circular : No. 5/75, dated 1 ‑ 2 ‑ 1975. Subject:-Basis for determination of director s remuneration ‑ Condition restricting travelling/daily allowance to limits laid down in Income ‑ tax Rules ‑ Whether to be imposed while giving approval under the section Whether the condition restricting travelling and daily allowance, which may be paid to the directors of the company for performing journeys on the business of the company, to the limits laid down in rule 6D of the Income‑tax Rules, 1962 should be imposed, has been considered in consultation with the Company Law Advisory Committee. Having regard to the various practical difficulties faced by the companies in complying with the aforesaid condition, the Central Government have decided that no such condition need be imposed. The companies may, however, be advised to ensure that the payment will be on the basis of actual expenditure and expenditure kept to the minimum.