Head of Income under Income Tax Act
This query is : Resolved
CA RAMESH KUMAR AHUJA
(Querist)
02 July 2008
Commission paid to a Non Executive Director of a Limited Company;Whether the same is taxable under the head Salaries or Business Income or any Other Head?
04 July 2008
Income from other sources
CA RAMESH KUMAR AHUJA
(Querist)
04 July 2008
Thanks,
However, the matter needs to be considered further in the light of the following:
Section 56(2) covers i) dividends ii) hire charges of machinery iii) income from letting of building, if inseperable iv)income referred to in sec 2(24)(xi); keyman insurance v).... vi)certain gifts exceeding Rs 50000 in aggregate
Moreover, it is in the context of Companies Act that term Non Executive Director is treated seperately. Otherwise, the same should be treated at par with Executive Director and commission paid be covered under the head of 'SALARY INCOME'
Non Executive directors also take part in the major decision making functions and involve themselves in the management of the affairs of any company. It is only on account of their being the Independant Directors that they are called as Non Executive Directors.
Hope you will reconsider the matter and give ur opinion thereto.
However, the matter needs to be considered further in the light of the following:
Section 56(2) covers i) dividends ii) hire charges of machinery iii) income from letting of building, if inseperable iv)income referred to in sec 2(24)(xi); keyman insurance v).... vi)certain gifts exceeding Rs 50000 in aggregate
Moreover, it is in the context of Companies Act that term Non Executive Director is treated seperately. Otherwise, the same should be treated at par with Executive Director and commission paid be covered under the head of 'SALARY INCOME'
Non Executive directors also take part in the major decision making functions and involve themselves in the management of the affairs of any company. It is only on account of their being the Independant Directors that they are called as Non Executive Directors.
Hope you will reconsider the matter and give ur opinion thereto.
CA RAMESH KUMAR AHUJA
(Querist)
04 July 2008
Thanks,
However, the matter needs to be considered further in the light of the following:
Section 56(2) covers i) dividends ii) hire charges of machinery iii) income from letting of building, if inseperable iv)income referred to in sec 2(24)(xi); keyman insurance v).... vi)certain gifts exceeding Rs 50000 in aggregate
Moreover, it is in the context of Companies Act that term Non Executive Director is treated seperately. Otherwise, the same should be treated at par with Executive Director and commission paid be covered under the head of 'SALARY INCOME'
Non Executive directors also take part in the major decision making functions and involve themselves in the management of the affairs of any company. It is only on account of their being the Independant Directors that they are called as Non Executive Directors.
Hope you will reconsider the matter and give ur opinion thereto.
However, the matter needs to be considered further in the light of the following:
Section 56(2) covers i) dividends ii) hire charges of machinery iii) income from letting of building, if inseperable iv)income referred to in sec 2(24)(xi); keyman insurance v).... vi)certain gifts exceeding Rs 50000 in aggregate
Moreover, it is in the context of Companies Act that term Non Executive Director is treated seperately. Otherwise, the same should be treated at par with Executive Director and commission paid be covered under the head of 'SALARY INCOME'
Non Executive directors also take part in the major decision making functions and involve themselves in the management of the affairs of any company. It is only on account of their being the Independant Directors that they are called as Non Executive Directors.
Hope you will reconsider the matter and give ur opinion thereto.
Dhirajlal Rambhia
(Expert)
17 June 2023
"Sorry, I am not a featured member."
For featured members contact....
https://www.caclubindia.com/catalogue/featured.asp
For featured members contact....
https://www.caclubindia.com/catalogue/featured.asp
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Capital Gail Exemption Certificate
- Taxation of crypto futures in India Fy 2026- 2027
- EPF ECR NEW RULES Sep 17th 2026
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Issuing of delivery challan by seller of goods
- MSME disclosure and disallowance
- Accounting treatment of AMC alongwith the purchase of Laptop
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
