Director income tax query

Director of the pvt ltd company. Is comes under defination of the profession ?If he is only graduate person.

Replies (7)
If he is received salary (director) from company then he will treat as Salaried Person...
Work is professional or not depends on nature of work

Receipt of Directors sitting fees is Professional Income subject to 194J provisions

Not at all it's part of salary
@ Pradeep
How do you say it's part of salary ?? Any base ??

1. This has been a subject matter of debate in many cases. 
2. The nature of payment made to the director can be both salary and professional fees. 
3. If there exists an employer-employee relationship between the director and the company, then TDS is to be deducted u/s 192 and he will be considered as normal employee of the company. 
4. In addition to the above salary, sometimes directors are also paid commission, brokerage, sitting fees, etc. All these payments are made for special service rendered by the director on his professional capacity. All these services will be viewed as special knowledge acquired by such director and his specialized skill is utilized for the company's decision. From this angle whatever is paid will be charged as professional fee and TDS u/s 194J(ba) @ 10% will be deducted on payment above Rs. 30,000. 
5. So, to answer your question of whether to consider director as profession or employee depends on the contract of employment and service he is rendering to the company. His graduation does not matter as far as income tax is concerned. 
Please correct me if the above solution has an alternative view. 

How to report it authorities abt it tax invader

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
14 October 2026
Accountant

Rize.farm

Bengaluru

B.Com

View Details
Company
07 October 2026
Senior Account Manager

Amplio Invest

Mumbai

M.Com

View Details
Company
30 October 2026
Asst Manager Accounts

Goodwin Pumps India Pvt Ltd

Chengalpattu

CA Inter

View Details
Company
28 October 2026
Assistant Director/ Associate Director-Finance & Accounting

Krea University

Chennai

CA

View Details
Company
12 October 2026
Chartered Accountant - Internal Audit

HKC | Chartered Accountants & Business Advisors

Ludhiana

CA

View Details
Company
Featured ARTICLESHIP 06 October 2026
Semi Qualified

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
21 October 2026
CA INTER/ BCOM WITH EXPERIENCE

CA S KUMAR GUPTA & CO

Amritsar

CA Inter

View Details
Company
06 October 2026
Assistant Manager - Audit and Compliance

Ravi K Jain & Co

Noida

Others

View Details