28 November 2011
Dear all, A director of a Pvt. Ltd. Co. recives remuneration from the Co. (i) In which head his income will be shown? (ii) Which ITR Form will be filled up when he has no other income?
28 November 2011
1.the director of a company will be an employee only where there exists a special agreementn for contract of service...if such agrrement does not exist then director shall not be regarded as an employee and any remuneration paid to director will be taxable as income from other sources.
2. ITR-2 shall be applicable in case income from other sources
In Sajid Mowjee v. Income-tax Officer [2005] 148 TAXMAN 502 Calcutta High Court said,it is to be assessed under the head 'salaries'.
P.S:- It is not the character of the recipient but the character of the receipt that is material for the purpose of determining as to under which head the receipt should be treated for the purpose of income-tax.
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