salary to director (who is also owner of the institution), taxable under which head, and what are the TDS compliance......
kapil rajpoot (C.A. Final Student) (160 Points)
23 March 2010salary to director (who is also owner of the institution), taxable under which head, and what are the TDS compliance......
nilesh dube
(Service )
(74 Points)
Replied 23 March 2010
Dear Kapil,
Salary received by the director taxable as Income from salary would depend upon whether the director is employee of the company or not. If the relationship of employer and employee exist between director (on the basis of appointment letter ) and company then the remuneration received by the director is chargeable under the head salary.
TDS rate : slab rate applicable to respective assesse ie individual , women & senior citizen.
If however such relationship does not exist then it is chargeable under the head income from business & profession ie professional income.
TDs rate : At the rate of 10%.
SHUVRO
( (WANT TO LEARN) )
(175 Points)
Replied 23 March 2010
Dear nilesh
can it also not be charged under head income from other sources?
Subash Srinivasan
(chartered accountant)
(390 Points)
Replied 23 March 2010
Director is an EMPLOYEE of the company in the way other employees are. he is appointed by the shareholders (Owners) for running the co. and gets remuneration in return.
The Salary received by the director has to be shown under the head Income form Salary in his computation
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