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accounts

Kumar (Accountant) (224 Points)

07 December 2009

what would be the head for the Payment for LIC & income tax of a director of company? Please advice.

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Sourabh Sharma (CS CA (Final) M.com NCFM Derivative Capital Market Mutual Funds) (771 Points)
Replied 07 December 2009

DEBIT THE PERSONAL ACCOUNT OF DIRECTOR FOR SUCH PAYMENTS

pallavi (articled assistant) (36 Points)
Replied 07 December 2009

you will have to charge those to personal accounts of directors. these are not deductible expenditure for company

Jaspreet Singh (Accountant) (327 Points)
Replied 08 December 2009

Company has a seperate legal entity.It has no relation with its members or directors.So,this expense is debited in Director's personal A/C.

Ansari (ca final) (444 Points)
Replied 09 December 2009

Originally posted by :Jaspreet Singh
"	Company has a seperate legal entity.It has no relation with its members or directors.So,this expense is debited in Director's personal A/C.	"

Hareesh H Sharma (Cleared IPCC..now article) (894 Points)
Replied 09 December 2009

yup charge to personal acc of the director

Amol Gopal Kabra (CA,CS,DISA) (Practicing CA) (8539 Points)
Replied 10 December 2009

The company can take the deduction of LIC paid for the director and can show it as Keyman Insurance. However, the income tax paid can be debited to the profit and loss acoc*nt in Schedule VI Final Accounts but shall not be allowed as deduction in the Income Tax Computation.