Thanks for all the replies. The person will show zero salary and use ITR 4 for the profits from freelance programming.
Shanthi
(Junior Student)
(226 Points)
Replied 25 June 2015
Thanks for all the replies. The person will show zero salary and use ITR 4 for the profits from freelance programming.
Manoj BG
(Tax Professional and in Service)
(1795 Points)
Replied 25 June 2015
Hi Shanthi,
Salary would not be charged in hands of Director as company has not shown salary as due to Director in their books. In case in next year, if company decided to give all arrears to directors for previous years before being winding up, it will be charged to tax in hands of Director at the time of receipt of such arrears.
Thanks and Regards,
Manoj B. Gavali
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