Is Section 40A (2) (a) applicable to excessive Director's Remuneration paid by the company.
Note: The director has substantial interest in the company.
If yes, how would AO judge the normal amount of consideration?
Menu
Applicability of section 40a (2) (a) of income tax act
Replies (1)
I feel, the AO will have to consider the time spent by the director for business, comparable remuneration in the industry, qualification, dependance of company on the director, other sources of income of directors for which he would be spending his time etc.,
Recent Topics :
- Partnership tax audit query
- ERROR SHOWING PARTNER REMUNERATION ITR 3 TIME OF V
- Form 146 foreign remittance us citizen
- GST 16(2) notice
- Which GSTR-1 upload error do you hit most often?
- Need advice regarding accounting fees
- Is it possible to get a refund for an accidental o
- ITR-3 Section P&L - speculative income - no bo
- Foreign Assets reporting
- Build corpus in HUF
Related Topics :
CAclubindia
