22 May 2010
Sec. 15 of Income tax Act, Income taxable under the head salaries only if there exists employer & employee relationship between the payer & payee.
Sec. 2(13) of Companies Act – meaning of Director – Director as such are not employer or servant of the company .
Sec. 56(2) of Income tax Act, specific Income chargeable under the head “Income from other sources “ include Director Fee .
As per above point Why Director remuneration taxable under head “Income From salaries”. Why not Income chargeable under the head “Income from other sources”
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