Query about income tax/tds for addiitonal director

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 December 2015 i have been an employee for 10 years (and i still am) at a private limited company. PLUS i was made additional director of this company one year ago, since the other 2 directors are in USA. My question is: my present tax liability is 30% TDS. If i resign as employee and continue as addl director (with the same renumeration), am i allowed by law, for a lower tax? i hope i have stated my question clearly. can someone please let me know what is the best thing to do... thanks in advance

Nikhil Kaushik

Nikhil Kaushik (Expert)
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18 December 2015 well as long as you receive salary instead of professional income, there won't be any lower tax effect. Also given that you are already in 30% tax bracket, you also will have to collect service tax which will further reduce any tax benefit that you may wish to derive from such a move. Add to it the liability of maintaining books of accounts and in case the total receipts cross 25 lakhs, the liability to get the tax audit done.

Querist : Anonymous

Querist : Anonymous (Querist)

19 December 2015 thanks Nikhil. i guess that means i leave things as they are