Tax Exemptions for Company Directors

This query is : Resolved 

09 January 2008 Would request you to let me know what are the Tax exemptions does the directions in a company have?

09 January 2008 Hi Lata,

Directors of remuneration are taxed under the head salaries.

Rgds/
Vineet

09 January 2008 sorry Sir I mean Directorsonly and thank You so much for your answer.

Regds,
lata


09 January 2008 DIRECTORS DO NOT- REPEAT - DO NOT ENJOY ANY SPECIAL EXEMPTIONS IN INCOME TAX OR ANY ACT FOR THAT MATTER.
THEY MAY BE EVEN AT A DISADVANTAGEOUS POSITION AS CAN BE SEEN BELOW.
UNDER INCOME TAX ACT IN SECTION 40A(2) IF EXP.IS CONSIDERED AS EXCESSIVE FOR GOODS OR SERVICES ETC...AND WHEN SUCH PAYMENTS ARE MADE TO DIRECTORS WILL BE DISALLOWED.
R.V.RAO

11 January 2008 Dear Sirs,
To be more clear on this ,you have mentioned that Directors remuneration are taxed under Head salaries, that means they get exemptions under Medical reimbursement, LTA and HRA,as we give exemptions to employees to the above mentioned Allowances in our company.

would like to know whether they have even PF introduced applicability.

rgds,
lata

16 January 2008 Yes. The Medical reimbursement, LTA HRA PF etc to directors as package of salary will also be subject to the same provisions of Income tax Act as any other salary recipient.

15 March 2008 Provisions of Companies Act have to be observed for rem



You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CCI Pro
CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries