Tax Exemptions for Company Directors
This query is : Resolved
09 January 2008
Would request you to let me know what are the Tax exemptions does the directions in a company have?
CA. Vineet Grover
(Expert)
09 January 2008
Hi Lata,
Directors of remuneration are taxed under the head salaries.
Rgds/
Vineet
Directors of remuneration are taxed under the head salaries.
Rgds/
Vineet
09 January 2008
sorry Sir I mean Directorsonly and thank You so much for your answer.
Regds,
lata
Regds,
lata
09 January 2008
DIRECTORS DO NOT- REPEAT - DO NOT ENJOY ANY SPECIAL EXEMPTIONS IN INCOME TAX OR ANY ACT FOR THAT MATTER.
THEY MAY BE EVEN AT A DISADVANTAGEOUS POSITION AS CAN BE SEEN BELOW.
UNDER INCOME TAX ACT IN SECTION 40A(2) IF EXP.IS CONSIDERED AS EXCESSIVE FOR GOODS OR SERVICES ETC...AND WHEN SUCH PAYMENTS ARE MADE TO DIRECTORS WILL BE DISALLOWED.
R.V.RAO
THEY MAY BE EVEN AT A DISADVANTAGEOUS POSITION AS CAN BE SEEN BELOW.
UNDER INCOME TAX ACT IN SECTION 40A(2) IF EXP.IS CONSIDERED AS EXCESSIVE FOR GOODS OR SERVICES ETC...AND WHEN SUCH PAYMENTS ARE MADE TO DIRECTORS WILL BE DISALLOWED.
R.V.RAO
11 January 2008
Dear Sirs,
To be more clear on this ,you have mentioned that Directors remuneration are taxed under Head salaries, that means they get exemptions under Medical reimbursement, LTA and HRA,as we give exemptions to employees to the above mentioned Allowances in our company.
would like to know whether they have even PF introduced applicability.
rgds,
lata
To be more clear on this ,you have mentioned that Directors remuneration are taxed under Head salaries, that means they get exemptions under Medical reimbursement, LTA and HRA,as we give exemptions to employees to the above mentioned Allowances in our company.
would like to know whether they have even PF introduced applicability.
rgds,
lata
S.Srinivasaraghavan
(Expert)
16 January 2008
Yes. The Medical reimbursement, LTA HRA PF etc to directors as package of salary will also be subject to the same provisions of Income tax Act as any other salary recipient.
S.Srinivasaraghavan
(Expert)
15 March 2008
Provisions of Companies Act have to be observed for rem
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