TDS on Director remuneration

This query is : Resolved

Goongan (Querist)
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21 May 2010 Whether director remuneration taxable under head of salary or other income
Whether TDS deducted under section 192 or 194C

CMA.Palani Arumugam

CMA.Palani Arumugam (Expert)
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21 May 2010 Directors remuneration is taxable under the head salary and TDS is to be deducted u/s.192

taxindiaconnect

taxindiaconnect (Expert)
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21 May 2010 agreed with arugam

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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21 May 2010 AGREE. U/S 192B

Goongan

Goongan (Querist)
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22 May 2010 Sec. 15 of Income tax Act, Income taxable under the head salaries only if there exists employer & employee relationship between the payer & payee.

Sec. 2(13) of Companies Act – meaning of Director – Director as such are not employer or servant of the company .

Sec. 56(2) of Income tax Act, specific Income chargeable under the head “Income from other sources “ include Director Fee .

As per above point Why Director remuneration taxable under head “Income From salaries”. Why not Income chargeable under the head “Income from other sources”

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