Query about income tax/tds for addiitonal director

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Querist : Anonymous

Querist : Anonymous (Querist)

18 December 2015 i have been an employee for 10 years (and i still am) at a private limited company. PLUS i was made additional director of this company one year ago, since the other 2 directors are in USA. My question is: my present tax liability is 30% TDS. If i resign as employee and continue as addl director (with the same renumeration), am i allowed by law, for a lower tax? i hope i have stated my question clearly. can someone please let me know what is the best thing to do... thanks in advance

Nikhil Kaushik

Nikhil Kaushik (Expert)

18 December 2015 well as long as you receive salary instead of professional income, there won't be any lower tax effect. Also given that you are already in 30% tax bracket, you also will have to collect service tax which will further reduce any tax benefit that you may wish to derive from such a move. Add to it the liability of maintaining books of accounts and in case the total receipts cross 25 lakhs, the liability to get the tax audit done.

Querist : Anonymous

Querist : Anonymous (Querist)

19 December 2015 thanks Nikhil. i guess that means i leave things as they are

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