victor (Manager Accounts) (42 Points)
28 February 2012Sir/Ma'am
Can anyone help with the answers to the following
1) How is income of a Director(who is a full time employee) to be treated- as in Director's renumeration? or Sitting Fees?
Is there any limit to Director's Renumeration to be paid?
Awaiting your help
regards
Devendra
(Chartered Accountant)
(4775 Points)
Replied 28 February 2012
In the case of Director of a Private Limited Co., there is no limit for paying the Director's remuneration. The Director's remuneration shall be taxable under the head Income from Salary. Whereas the sitting fees received by the Director is taxable under the head Income from Other Sources.
Note : Please check the Income Tax Slab rates to calculate the Income Tax Liability.
Regards,
Devendra Kulkarni
CAclubindia
