12 November 2008
Under which section should tax be dedcuted at source on commission payable to Director of a company?
In case, tax has not been dedcuted at source on the commission payable to Director, is such amount liable for disallowance u/s 40(a)(ia) of the I. T. Act?
12 November 2008
If he is a wholetime director, 192. If he is not it can not be treated as salary in my opnion and therefore 194J Failure of TDS u/s 192 will not invoke 40(a)(ia), whereas the other section would.
17 November 2008
The meaning of the term ‘salary’ for purposes of income tax is much wider than what is normally understood. Every payment made by an employer to his employee for service rendered would be chargeable to tax as income from salaries. The term ‘salary’ for the purposes of Income-tax Act will include both monetary payments (e.g. basic salary, bonus, commission, allowances etc.) as well as non-monetary facilities (e.g. housing accommodation, medical facility, interest free loans etc).
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