Director's Remuneration

This query is : Resolved

Lata rao (Querist)
Follow

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.

Lata

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
Follow

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.

CA. Vineet Grover

CA. Vineet Grover (Expert)
Follow

21 January 2008 Hi Lata,

All the provisions of Income Tax Act under Salaries shall apply to Directors' remuneration.

Rgds/
Vineet

Upgrade to CAclubindia Pro. Subscribe Now!

R.V.RAO

R.V.RAO (Expert)
Follow

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