Is Section 40A (2) (a) applicable to excessive Director's Remuneration paid by the company.
Note: The director has substantial interest in the company.
If yes, how would AO judge the normal amount of consideration?
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Applicability of section 40a (2) (a) of income tax act
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I feel, the AO will have to consider the time spent by the director for business, comparable remuneration in the industry, qualification, dependance of company on the director, other sources of income of directors for which he would be spending his time etc.,
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