DIRECTOR REMUNARATION

IF THE DIRECTOR HAS A PROPRIETORSHIP BUSINESS SO WHEN HE GET REMUNERATION FROM THE COMPANY WHERE TO SHOW IN THE BALANCE SHEET OR PROFIT & LOSS ACCOUNT OR IN THE COMPUTATION OF INCOME? HE FILES INCOME TAX AGAINST BUSINESS INCOME AND SALARY SHOWN IN CAPITAL ACCOUNT SO IS THAT OK. PLEASE GIVE ME PROPER GUIDANCE 

Replies (5)
Quick Summary
This discussion clarifies how to account for director remuneration when the director also owns a proprietorship business. The remuneration should be treated as salary income and reported under the 'Income from Salary' section of the income tax return. It should not be directly added to the capital account on the balance sheet, although the overall income will impact the proprietor's capital.

Yes, the remuneration is one of income. So, it will be shown in income tax return.

But where we can show 

In computation as a income from salary 

Or added in capital account in balance sheet

It's compute as Salary income.

The individual needs to show all his income while filing the income tax returns, 

In Computation

Salary under Income from Salary Income

Business Income under Income from Profit and business income

Other income under Income from Other Sources

Shares and Property sold under Income from Capital Gain / Loss 

 

Hope this solve your query.

 

Thanks

 

 

 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
26 September 2026
Chartared Accountant

pushpganga ventures

Pune

CA

View Details
Company
ARTICLESHIP 16 September 2026
CA Article Trainee

SR BAGAI & Co.

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 15 September 2026
Freelance Taxation Content Writer Intern

Interactive Media Pvt Ltd.

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 21 September 2026
CA Article Assistant

KK & Company Chartered Accountant

Pune

CA Inter

View Details
Company
04 September 2026
CA inter Or ca finalist

A Jaiswal and company

Lucknow

CA Final

View Details
Company
20 September 2026
Semi Qualified CA

Navin & Associates

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 01 September 2026
Articles

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Foundation

View Details
Company
Featured 11 September 2026
Audit Executive

RBSM Corporate Advisors Private Limited

Pune

CA

View Details