Rent paid for directors house-directors remuneration?????
This query is : Resolved
01 November 2014
1.Mr.X is director i 2 companies A and B.
2.Mr.x resides in a house in Noida and the house is shown as fixed assets in the company B.
3.Company A pays the rent to the company B for the same house in Noida and deduct tds @ 10%.
My query is whether rent paid by company A is to be clubbed in Directors remuneration and taxed accordingly or it is correct to record it as Rent??????????
2.Mr.x resides in a house in Noida and the house is shown as fixed assets in the company B.
3.Company A pays the rent to the company B for the same house in Noida and deduct tds @ 10%.
My query is whether rent paid by company A is to be clubbed in Directors remuneration and taxed accordingly or it is correct to record it as Rent??????????
02 November 2014
The company is providing a rent free accommodation to the director. Hence it is to be treated as perquisites and tax it as per perquisites valuation.
03 November 2014
But the company B is receiving Rent there it would be taxed as Rental income.
And Director would also pay tax for rent free accomodation.
Is it not double taxation as the Director is the owner of both the companies??????
And Director would also pay tax for rent free accomodation.
Is it not double taxation as the Director is the owner of both the companies??????
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
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Reopen of assessment proceeding
- Depreciation of fixed assets- coop housing society in mumbai
- TDS on Consultancy- Non DTAA
- EPF FULL & FINAL RULES IN 2026
- Management System (IMS)
- Condonation . E-Verification of last year return .
- Rental income gst and it purpose
- COMMERCIAL INVOICE FOR MATERIAL AND FREIGHT
- Eway bill generation from place other than registeted
- FTS Taxable under 115A
- 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
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
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
