Thus, companies with an effective capital of Rs.100 crores

4,00,000/- per month or Rs. 48,00,000/- per annum to each of

their managerial person. Likewise, companies falling under other slabs of effective capital can pay up to double the amount of the respective ceilings, by

complying with the aforesaid requirements and the procedure.

Companies having negative effective capital can pay remuneration up to the revised ceiling [even more]’ by obtaining Central Government’s prior approval.

Companies in Special Economic Zones, as notified by the Deptt. of Company Affairs from time to time, can pay upto Rs. 2,40,00,000 (24Iakhs) per annum

or Rs. 20,00,000 (2 lakhs) per month provided that these Companies have not raised any money by public issue of shares or debentures in India. Again,

such a company should not have defaulted (in India) in repayment of its debts (including public deposits) or debentures or interest thereon for a continuous

period of 30 days in any financial year [Notification dt.14.8.2002]

Besides the aforesaid remuneration, a managerial personnel of a company having nO profits or inadequate profits shall also be eligible to the following

perquisites:

(a) Contribution to provident fund, superannuation fund or annuity funds to the extent these either singly or put together are not taxable under the

Income-tax Act, 1961.

(b) Gratuity payable at a rate not exceeding half a month salary for each com pleted year of service.

(c) Encashment of leave at the end of the tenure.

In addition to these perquisites, an expatriate managerial person (including a non-resident Indian) shall also be eligible to the following perquisites:

(i) Children Educational Allowance. In case of children studying in or outside India, an allowance limited to a maximum of Rs. 5,000 per month per child or

actual expenses incurred, whichever is less. Such allowance is admissible up to maximum of two children.

(ii) Holiday Passage for Children Studying Outside India/Family Staying Abroad. Return holiday passage Once in a year by economy class or once in two

years by first class to children and to the members of the family from the place of their study or stay abroad to India if they are not residing in India with the

managerial person.