Head of Income under Income Tax Act

This query is : Resolved

CA RAMESH KUMAR AHUJA (Querist)
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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?

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04 July 2008 Income from other sources

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Querist)
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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.

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Querist)
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