Directors income - ITR and TDS Query (Urgent)

Hi,

My father age 70 has a one time paid Directors remuneration from a Private limited company of Rs.80,000/-
(It was a one time transaction and not a recurring one like salary). He is not an active employee of the company.
Under what head in ITR should It be filed?
TDS was not deducted on it, It will be filed if required as correction.

Please advise
1) under which header of ITR should this income be be filed?
2) Is there any way for a director to take remuneration without payment of TDS?

Thanks

Replies (9)
Quick Summary
This discussion addresses a query regarding the correct ITR head for a one-time director's remuneration of £80,000. The consensus suggests reporting this income under 'Income from Other Sources' (IFOS) due to the lack of clarity on whether it constitutes salary or fees, and because it's a one-off payment. It also touches upon TDS implications, advising that if TDS was not deducted, declaring the income in the ITR should prevent future issues, and potential TDS can be claimed by revising the return if reported late.

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Anyone please? Help. 

Need to file the return today as dates have not been extended.

1. If it is remuneration TDS u/s. 194J is to be deducted at 10%.

2. But as no TDS is been deducted, check the reporting in AIS, for its head of income.

3. In case nothing reported under AIS, select IFOS, & file return.

Thank you for your response sir. Will there be any issue in the future if tds is not deducted and income is reported under income from other sources? 

Also if tds is now submitted as correction with a late fee, it will only reflect after some days. How can that be claimed? Can that be claimed in the next years return? Can a previous year unclaimed tds be claimed in the next year?

1. As such when you have declared the income, there being no under-reporting, so no problem would be faced.

2. Most probably, no change in TDS would occur. In case it is been reported in future, you can revise the return without any penalty till 31.12.2022, and claim the TDS.

Thank you. You answers have been very helpful.

My Pleasure ......                    

Hi,

Sir, If i file it under professional fees 44ada should include the amount with tds or without? Also Directors remuneration under 194J can be filed under presumtive 44ada right?
 

As there is no clarity of the head under which it is to be declared, whether it is salary or remuneration or sitting fees, and only onetime payment received, better to declare it under IFOS... No need to file u/s. 44ADA when the type of services offered is not clear.

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