Director Sitting Fees - "Business Income" or "Income from other sources"

Manoj Punjabi (Accountant) (273 Points)

06 July 2024  

Dear experts, please guide on this query.

Siting fees paid to director TDS was deducted u/s 194J, amount is just Rs.40000.

Is it a 'business-income' or 'Income from other sources.'???

Director has Income from Salary, Rent, Interest, and Sitting fees.

So no business income as such, as far as we understand.

Another issue is, if we take Sitting Fees as business income, then we have to go for ITR3, which will also restrict our options to change new/old regime in future, due to business income.

Question:

1) What is right thing to do, Show sitting fees as 'Business income' or 'Income from other sources.'

Note: Consultant is insisting to show it as business income because TDS was deducted u/s 194J, asking us to take responsibility on ourselves by giving him in writing if we want to show it as "income from other sources".

Question:

2) Is it okay to give consultant in writing that it is our decision to show sitting fees as "Income from other sources".