21 January 2008
Question related to director's Remuneration.
It is was told that the Director's remuneration is taxed under Head salaries, to be more clear on this,would you Please clarify that they have the same exemptions like Medical reimbursement, LTA and HRA similar to the other employees.
Please give me some inputs on this as i need it very urgrntly.
21 January 2008
Yes, they have the same exemptions, subjct to the fulfilment of conditions of the povisions of Income tax Act 1961 in granting and availing.
22 January 2008
THE PROVISIONS OF TAX ON SALARIES ALSO APPLY TO DIRECTORS AS ANY OTHER SALARY ASSESSEE. NO SPECIAL PRIVILEGES . MOREOVER UNDER SEC 40 (A)(2),IF ANY EXP. IS INCURRED ON A COMPANY DIRECTOR OR HIS /HER RELATIVE AND IF THE EXP. IS EXCESSIVE OR UNREASONABLR AS PER FAIR MARKET VALUE OF GOODS OR SERVICES OR FACILITIES , THE SAME SHALL BE DISALLOWED IN COMPUTING BUSINESS PROFITS TO THE EXTENT SUCH EXP. IS UNREASONABLE OR EXCESSIVE AS PER ABOVE CRITERION. R.V.RAO
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