HOW CAN THE COMMISSION RECD TO DIRECTOR FROM CO TREATED AS HIS BUSINESS INCOME ?
PLEASE GIVE AN EXAMPLE WITH RESPECT TO UR ANSWER
THANKS IN ADVANCE
CA Namrata ghosh
(CA)
(55 Points)
Replied 17 August 2010
Dheeraj
(Learner)
(1100 Points)
Replied 17 August 2010
COMMISSION RECD TO DIRECTOR WILL BE SHOWN AS SALARY IF HE IS AN EMPLOYEE OF THE CO
BUT IF HE IS NOT AN EMPLOYEE THAN THAT COMMISSION EITHER CAN BE SHOWN AS OTHER SOURCES INCOME OR CAN BE SHOWN AS BUSINESS INCOME
NOW MY QUESTION IS HOW A DIRECTOR CAN SHOW HIS INCOME UNDER A BUSINESS ?
Ca kirti Nagpal
(CA)
(274 Points)
Replied 18 August 2010
if a dir is not employee then he may have substantial interest in working of company n so commission recvd is treated as his business income same as in case of brokerage recvd frm sale n purchase of property
Dheeraj
(Learner)
(1100 Points)
Replied 18 August 2010
THANKS KIRTI
N WILL U PLZ TELL ME WHAT KIND OF EXPENSES HE CAN CLAIM FOR DEDUCTION HOW ?
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