Directors remuneration

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This query is : Resolved

Pooja (Querist)

25 July 2018 Is remuneration received by the Director from a Private Ltd Co. taxable as salary in the hands of director if NO TDS is deducted by the company u/s or 192 194J ? In what cases is it taxed as Business or Professional Income?

Also, the Interest received by Directors on loans given to the company through own sources be taxed under IFOS ? Whether on acrrual basis or receipt basis?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

25 July 2018 In this case, the directors appointment (resolution passed for appointment, forms
filed with Registrar of companies ect) particulars has to be verified to ascertain the
appropriate head of income .

Interest is IFOS. Can be either way depending on the method of accounting
regularly followed by the Director.

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Pooja

Pooja (Querist)

25 July 2018 Thankyou Sir. So the director has to maintain books of accounts ? If it is a small company and the amount paid to director is less than 10 lacs rupees

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