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Can a PVT LMT company director get paid professional fee by the company?

Pvt ltd 472 views 4 replies

Wes T

1 Points Posted on 03 April 2024

I'm a director and majority share holder of a private limited company that provides software services.
I've been the main engineer behind all services provided by the company and taking income in the salary head for last 4 years.
I came to know that I can also claim 44ADA if I take professional fee instead of salary from my company which will reduce my tax burden and compliance significantly.
Is that correct or some rule actually prevents me to do so?

Replies (4)

sabyasachi mukherjee

Profession Business

28207 Points Posted on 04 April 2024

Yes , but depending upon the assignment or agreement he received.

CA Raj Doshi

Practising CA

8954 Points Posted on 06 April 2024

Https://simplybiz.in/can-an-executive-director-also-provide-consultancy-professional-services-to-the-company/#:~:text=Section%20197(4)%20%E2%80%93%20As,per%20the%20opinion%20of%20the

it's possible. very detailed article on this in above link.

sabyasachi mukherjee

Profession Business

28207 Points Posted on 07 April 2024

I can also share . But pls post synopsis

CA Raj Doshi

Practising CA

8954 Points Posted on 08 April 2024

Anybody can share but someone has to Google search and post something helpful to querist. which I did and you did not sir. In this case, lets see if you ( Mr. Sabyasachi Mukherjee ) spends time to make and post synopsis to help the querist or is just going to keep posting such jealous, hatred, negative and inferior comments on other members comments. I must say this, "Everyone is so insecure these days"