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TDS on Directors Remuneration

Hema Desai (PRACTICING CA AND ENTERPRENEUR) (92 Points)

06 June 2011

If Directors Remuneration is to be treated as Salary and TDS to be deduted Under Section 192; isnt he/she eligible for all the Tax exemptions Under section 10 under Income Tax Act, 1961?

Can deduction U/s 80GG be claimed, if HRA is not received and assessee dont have permenant residence?

Thank you

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CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 06 June 2011

For a director to be an employee there must be an empoyer-employee relationship between dir-co.

There must be a valid appointment letter as an employee of co. All statutory deduction as done for all employees like PF etc should have been deducted.

Normanlly directors are not considered as an employee of d company.Even if tds is deducted u/s 192 in my opinion no benefit shall be avaliableu/s 10 as allowed to a valid employees of a co.

Views of other members are also welcomed.

Correct me if i am wrong.