Directors Remuneration

Under the head Personnel Expenditure..

PERSONEL EXPENSES

Sir,

first of all thanking you for giving your precious time to me but let me sorry that I havenot exactly mentioned question but I want to ask that

A Person is getting Directors' remuneration from the company so in ITR in which head it will be taxed in the hands of DIRECTOR..??

is it IFOS or SALARY..??

Thanks and Regards,

The remuneration, received by a director is taxable as 'Income from salaries' or not, would depend upon whether the director is an employee of the payer or not. This can be determined from the nature of the relationship between the director and the payer.

If the relationship of a master and servant exists between the payer and payee, then the director would be an employee and the remuneration that is received would be taxable under the head 'salaries'. However, if such relationship does not exist, then the director will not be considered an employee of the payer and the Income would be taxable as Professional Income.