Director and owner - income tax rules

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I am both Director and Shareholder (50%) of our small private limited company. The other director and shareholder (50%) is my husband. Both of us draw salary/director's remuneration. Till now we have not taken any profit share from the company.

My questions are:

1. Which ITR Form do we use to file income tax return

2. Do we need Form 16

3. If we take profit share, how do we show it in our income tax return

Regards

Replies (3)
  1. If both of u have only salary income then ITR1 to be  used (provided u have no other income like capital gain)
  2. If taxable income crosses the exemption limit, TDS is applicable u/s 192, in which case form 16 is required
  3. Profit share means dividend? Dividend income is exempt in the hands of the shareholder but company has to pay dividend distribution tax. In this case also, ITR1 is enough

 

Thanks. If I have some income from shares also, will it still be ITR1?

If u have capital gain on sale of shares, then u need to use ITR2

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